A new report from eMarketer says the original projections of $1.8 billion in ad spending on social networks in 2009 are actually lower. eMarketer is now claiming this number is actually closer to about $1.3 billion for 2009. While this number is still greater than social network ad spending in 2008, it is not as high as once thought to be.
eMarketer goes on to site the economic recession and “slower-than-expected” revenue growth from MySpace and Facebook. “In [eMarketers] previous prediction, it said MySpace would bring in $755 million in US ad spending in 2008, but that estimate has now dropped 22.5% to $585 million. At Facebook, US advertisers will spend an estimated $210 million in 2008, which is 20.8% lower than the earlier forecast of $265 million.”
“Marketers should not write off social networks completely,” said eMarketer senior analyst Debra Aho Williamson. “In a difficult economy it is usually easier to market to an existing customer than to acquire a new one. With a relatively small investment, companies can use social networks to cultivate relationships with customers who have already raised their hand and expressed interest in their brand or product.”