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Social network marketing to hit $2.5 billion in 2011

myspace Social network marketing to hit $2.5 billion in 2011Now is the time for social networks to fulfill the promise of social network marketing by showing that the key concept of marketing “one-to-one-to-many” provides real results, says eMarketer’s report “Social Network Marketing: Where to Next?” A study sponsored by MySpace, issued in April 2007, begins to fulfill that need, but more is required.

eMarketer has increased its estimate of US ad spending on social networks to $900 million in 2007. The increase comes from two factors: increased revenue projections for Facebook and additional spending on niche and marketer-sponsored social networks. Between 2007 and 2011, US ad spending on social networks will grow 180% to $2.5 billion.

MySpace, still the largest player by far, is estimated to generate $525 million in the US this year. Facebook is expected to generate $125 million and both should continue to see healthy revenue increases. Combined, the two account for 72% of US social network ad spending in 2007 and 75% in 2008.

“But issues are beginning to surface,” says Debra Aho Williamson, senior analyst and author of the report. “Is there enough interest among consumers to support so many ventures? Does every company need a social network? Indubitably, many of the hundreds of social networking ventures pouring into the market will not survive.”

 

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