Social network ad spend to soar

November 2, 2006

Ignore it at your peril advertisers! The social network phenomenon just keeps on getting bigger. The latest news from eMarketer says that ad spend on social networks will reach $2bn by 2010.

According to eMarketer ‘ MySpace will continue to dominate social networks, accounting for 60% of total US online social network ad spending in 2007. eMarketer estimates MySpace will generate $525 million in 2007, up from $180 million in 2006. Competitors such as Facebook, Bebo and Piczo will make up the second-largest chunk of revenue, followed by social networks offered by portals and “niche” networks.’

The one concern is the metrics and measures for ROI that are currently in place on social networks. The buzz is that whoever offers proper metrics first will win a large piece of the advertising pie.

Slightly odd though that eMarketer estimated the estimate has increased quite so much from their October article on the same subject… A case of Web2.0 buzz at work perhaps?

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