NEW YORK, May 20 /PRNewswire/ --
- With Photo
- Growth still high, but from a very small base
In spite of media hype around social networking, worldwide advertising spending on social networks has not met expectations. eMarketer has revised its worldwide social network ad spending estimates, now projecting that advertisers will spend 1 billion pounds Sterling on social networks worldwide in 2008, rising to only 2.2 billion pounds in 2011. The previous figure for 2011 was 2.4 billion pounds.
(Photo: http://www.newscom.com/cgi-bin/prnh/20080520/NYTU043 )
Although the growth rate has been revised downward, the growth rate for worldwide social network ad spending still dwarfs that of worldwide online ad spending, which is projected to grow 22% in 2008. That's some positive reinforcement, particularly for those companies that are refusing to cut experimental advertising budgets.
Today's economy, combined with the fact that social networks are still trying to develop successful ad models, has led eMarketer to lower its ad spending projections for the next few years. "Social network sites are still trying to figure out what sort of advertising works," said Debra Aho Williamson, senior analyst specializing in social networking. "Tapping into consumers' conversations and spreading brand awareness virally has proven more challenging than companies originally thought."
For more information on social networks, or to speak with Ms. Williamson, contact the media staff listed below.
About eMarketer
eMarketer is "The First Place to Look" for research and analysis on digital marketing and media. eMarketer analyzes research from over 3,000 sources, and brings it together in analyst reports, daily articles and the most comprehensive database of online marketing statistics in the world.
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Web site: http://www.emarketer.com
Kris Oser, Director of strategic communications, eMarketer, +1-212-763-6033; Samson Adepoju, Communications coordinator, eMarketer, +1-212-763-6044 /Photo: http://www.newscom.com/cgi-bin/prnh/20080520/NYTU043
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