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Social network ad spending set to rocket
Ad spending on social networking websites in the US is set to rocket from $350 million this year to $865 million in 2007, according to a report by eMarketer.The figures show that even industry experts are surprised by the strong rate of growth – eMarketer's own previous estimate for 2006 was $280, a figure that had to be revised upwards.
Debra Aho Williamson, senior analyst at eMarketer, commented: "At this point, many of the dollars are still experimental, but in certain categories such as movies, TV and music, marketers are actively budgeting funds to social networking campaigns.
"Much like in the early days of web marketing, there is a fear of being left behind: if a competitor is there, then I need to be there too."
It is expected that MySpace will continue to dominate, accounting for well over half (60 per cent) of social network ad spending. The site was bolstered in August by a $900 million search marketing deal with Google.
Other networks likely to witness strong growth include Facebook, Bebo and Piczo, as well as those offered by portal sites.
Search Marketing news posted on 03 November 2006
