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Social networking sites enjoy internet advertising boost
Social networking sites are enjoying steep Internet Advertising growth, a new report from eMarketer shows.In the US, some $900 million was spent on social network advertising in 2007, up from just $350 million the year before. It is predicted that this figure will rise to $1,380 billion next year, and top $2.5 billion by 2011.
The figures clearly indicate that website owners should be engaging in internet advertising if they are not already doing so.
Much of the ad spend is going to MySpace and Facebook - together, these two rapidly-expanding sites hold 72 per cent of social networking ad spend in the States.
Facebook has expanded from 8.9 million active users in September 2006 to 31 million now.
"Based in part on MySpace's strong performance and additional traffic to Facebook, eMarketer plans to revise upward its forecast for social network ad spending," said the company's senior analyst Debra Aho Williamson.
"Advertisers are increasingly shifting ad dollars to social networking sites from portal sites."
Facebook is also set to give advertisers more control over where on the site their ads appear. Several companies, including Vodafone, abandoned the site because their ads were appearing next to a BNP profile.
Online Advertising news posted on 10 August 2007
