EMarketer lowers U.S. social network ad spend estimate

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Even as use of social networking sites continues to increase, social network advertising has not kept pace, according to digital marketing research company eMarketer. The company has lowered its projections for U.S. social network ad spending to $1.2 billion this year, down from the $1.4 billion the company projected in May.

In addition, eMarketer estimated that 2009 will see $1.3 billion worth of ads placed on social networks instead of the $1.8 billion previously forecast. The company attributed the anticipated falloff to slower-than-expected revenue growth at MySpace as well as the recession.

EMarketer also revised its forecast for MySpace and Facebook, the two largest social networks. In its previous prediction, eMarketer said MySpace would bring in $755 million in U.S. ad spending in 2008, but that estimate has now dropped 22.5% to $585 million. At Facebook, U.S. advertisers will spend an estimated $210 million this year, a 20.8% drop from the earlier forecast of $265 million, eMarketer said.