Social net ad spending is expected to rebound next year, says eMarketer analyst Debra Aho Williamson, expanding her previously released projections released in May that forecast a 3 percent drop to $1.1 billion in ‘09. The earlier figures are entirely unchanged and pinned the blame on MySpace’s struggles, which have only continued since eMarketer’s last look at the social net space.
—The turnaround: While there will be no return to the 32.9 percent growth rates of 2008, eMarketer projects that in 2010, ad spending on social nets will rise 13.2 percent to $1.2 billion. The year after that, social net ad dollars will slow down, rising 8.2 percent to $1.3 billion. Meanwhile, it’s no surprise that eMarketer is predicting that Facebook, which Williamson has said will gain 9 percent in ad revs this year with $230 million, as MySpace’s ad dollars shrink 15 percent to $495 million. She anticipates Facebook overtaking MySpace by 2011, though figures weren’t supplied. The report follows a another rosy outlook for interactive media from Forrester, which predicts that social media spending will see 34 percent compound annual growth rate through 2014.
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By David Kaplan