Consumers are using social
networking sites more than ever, but advertising spending has not kept
pace. Despite new social network ad formats launched in 2008, eMarketer
has revised its projections for US social network ad spending. It now
estimates advertisers will spend $1.2 billion on social networks this
year, down from the previous projection of $1.4 billion made in May.
Spending will reach an estimated $1.3 billion in 2009, down
from the previous projection of $1.8 billion. The recession and
slower-than-expected revenue growth at MySpace are two of the reasons
for the lowered forecast.