US Social Network Ad Spending Growth Lowered - eMarketer

US Social Network Ad Spending Growth Lowered - eMarketer.

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.