Spending on social network marketing will reach $2.5 billion in 2011, according to a new report by independent market research firm eMarketer.
The study, “Social Network Marketing: Where to Next?,” has increased its estimate of U.S. ad spending on social networks to $900 million in 2007, up from $350 million in 2006.
The increase is attributed to increased revenue projections for Facebook and additional spending on niche and marketer-sponsored social networks.
The study predicts that between 2007 and 2011, U.S. ad spending on social networks will grow 180% to $2.5 billion.
It also says that MySpace is still the leading site with an estimated of $525 million in the U.S. this year. Facebook is expected to generate $125 million and both should continue to see revenue increases.
According to the study, the two sites combined will account for 72 percent of U.S. social network ad spending in 2007 and 75 percent in 2008.
