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Sunday, March 30, 2008

Who's Spending On Social Networks?

US online social network ad spending is predicted to near $1.6 billion this year according to a survey by eMarketer. The figure includes all forms of advertising appearing on social network sites, including branded campaigns as well as search, video, local advertising and ads delivered via ad networks. According to the survey 29% planned to spend over $2 million, 11% planned to spend between $1 - $2 million, 26% planned to spend up to $1 million and 34% planned to spend less than $300,000.

Breakdown of Online Social Network Planned Marketing Spend by Marketers and Marketing Agencies - March 2008
Spending Amount               Percentage
$2,000,000 and over 29%
$1,000,000 - $2,000,000 11%
$300,000 - $999,999 26%
$300,000 and less 34%
"At those amounts, social network spending may still be categorized as experimental for many marketers. As in many other developing advertising markets, much of the spending on social networks is driven by leading-edge marketers who are willing to take risks," said Debra Aho Williamson, senior analyst at eMarketer.

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