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.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. 😛