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BizReport : Blogs & Content archives : November 01, 2006

Social Networking Ad Spend To Explode?

In the past few months marketing on social networking sites has become high priority for online advertisers. As social sites continue to see surging traffic, experts say ad spending is set to surge as well as marketers key in to the demographic.

by Kristina Knight

Next year, advertising on social networking sites is expected to jump to more than $860 million; that is more than double the $350 million that will be spent on social network advertising in 2006, according to eMarketer. By 2010, social network advertising is expected to boom to more than $2 billion.

According to MarketingVOX the report called "Social Network Marketing: Ad Spending Update" indicates social networking giant MySpace will continue to dominate existing networking sites and will account for 60% of the U.S. ad spend in 2007. MySpace’s portion is expected to be about $525 million in 2007.

But there are still measures to be taken to ensure the ad dollars keep coming. Debra Williamson, eMarketer senior analyst and author of the report said (via MarketingVOX), "The longer existing social networks take to develop adequate ROI metrics, the bigger the opening for a next generation of networks that are built from the ground up to accommodate advertising.”

Worldwide, social network advertising is expected to reach $1.1 billion in 2007. That is up from $445 million in 2006. The forecast by 2010 is expected to be $2.8 billion worldwide.

Tags: MySpace, social network advertising, social networking

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