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Social Networks: Ad Spend to reach $2b in 2010


Just a quick note on a prediction regarding Advertising revenue and online communities: An old article via Marketing Vox but worth watching to see how close they get next year:

Ad Spend on Social Networks to Reach $2B in 2010

Ad spending on U.S. social-networking sites in 2007 is expected to reach $865 million, up from $350 million in 2006, and will surpass $2 billion in 2010, according to eMarketer.

Ad spending on social-networking sites will reach $2.15 billion in 2010, according to a new eMarketer report, “Social Network Marketing: Ad Spending Update.” MySpace will continue to dominate, accounting for 60 percent of total U.S. online social-network ad spend in 2007. MySpace will account for $525 million in 2007 ad spend, up from $180 million in 2006.

Worldwide, social-network ad spending will reach $1.1 billion in 2007, up from $445 million in 2006 – and by 2010 spending is forecast to $2.8 billion worldwide.

Global social-network ad spend

Click to enlarge

Social networks must put adequate ROI measures in place if the flow of ad dollars is to continue, says Debra Williamson, eMarketer senior analyst and author of the report.

“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,” she says.

I still think advertising has a lot of ground to cover before it adapts  to the fundamental information flow in social networks. But then again, maybe I’m just being a grump. 😛

Laurel Papworth

Named by Forbes™ Magazine in the Top 50 Social Media Influencers globally, named Head of Industry, Social Media (Marketing Magazine™) and in the Power150 Media bloggers (AdAge™). CERT IV Training and Assessment certified trainer (Diplomas and Certificates etc) Adult Education. Laurel has manager Facebook Pages for Junior Masterchef, Idol, Big Brother etc. and have consulted on private online communities for banks Westpac, not for profits UNHCR & governments in SE Asia. Lecturer, social media, University of Sydney for 10 years and Laurel has 11,000 online students. Laurel Papworth personally connects to 6 million followers online and has taught around 100,000 people in the last 10 years how to be social media managers.

One thought on “Social Networks: Ad Spend to reach $2b in 2010

  1. I thought social networks would really rack up dollars from the money they make on advertisement.
    I hang in a few of the social sites and I am still trying to figure out how to do business in them besides buying ad space.Your thoughts create the thinkgs you most desire..

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