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Ads on social networking sites to resume in 2010: Report
by Jaspreet Virk - July 10, 2009 - comments
Despite a fall in advertising spending, the ad sales for Facebook are on the rise
New York, July 10: The overall U.S. advertising spending on social networking sites will fall in spending by 3 percent to $1.1 billion, according to a report by marketing researcher eMarketer.
The report, titled "Social Network Ad Spending: A Brighter Outlook Next Year", states that marketers are cutting costs due to slump in the market.
Further, the report envisages market to resume growth in 2010 when ad spending is expected to rise 13.2 percent to $1.3 billion.
Debra Aho Williamson, eMarketer senior analyst, stated, "The expected rebound in spending will come as more companies focus on creating and implementing an overall social marketing strategy."
Facebook witnessing rise in revenue despite slowdown
Despite a fall in advertising spending, the ad sales for Facebook are on the rise.
An eMarketer study says ad sales at Facebook will grow 9.5 percent to $230 million. On the other hand, ad revenue for MySpace is likely to fall by 15 percent to $495 million. Regardless of a slide in returns, MySpace will enjoy double the revenue earned by Facebook this year.
eMarketer believes Facebook will beat its competitor in 2011.
Williamson, said, "In 2010, as we start to come out of the recession, Facebook has all its guns going, and marketers will be putting more social media in [their budgets] where it makes sense."
Social networking sites are luring marketers
The report highlights growing interest among the marketers to advertise on social media platforms.
The study cites the example of online shoe retailer Zappos that offers special deals to people who are "fans" of the brand on its Facebook page. According to analysts, if such interactions generate returns for the advertisers, marketers are likely to invest more dollars on these sites.