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Social Networks Not Generating Enough Revenue

While social networking is a red-hot topic at Revenue and around the online marketing space, eMarketer has revised its U.S. social network ad spend projections downward. The market researcher estimates that advertisers will spend $1.4 billion to place ads on online social networks in 2008, down from the previous projection of $1.6 billion.

U.S. online social network ad spend is now projected to reach $2.6 billion in 2012. In its last projection, made in December 2007, eMarketer estimated that spending would reach $2.7 billion in 2011. Spending in that year is now expected to be $2.4 billion.

While the growth is not expected to occur at the previous rate, there is still much to be gained from leveraging social networks for online marketing efforts.

Full article: Debra Aho Williamson, Senior Analyst

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