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eMarketer lowers forecast for social network ad spending

Published on .

New York—eMarketer has revised its U.S. social network ad spending forecast, projecting that advertisers will spend $1.4 billion to place ads on online social networks this year, down from a previous projection of $1.6 billion.

By 2011, ad spending on social networks is expected to reach $2.4 billion, down from an earlier projection of $2.7 billion made in December.

The slowing economy and the struggle by social networks to develop successful ad models have led to lowered ad spending projections for the next few years, according to eMarketer.

Spending on social networks includes display, search and video ads, as well as any fees that marketers pay to social networks to develop profile pages or conduct promotions.

The new projections also include widget and application ad spending.

—Kate Maddox

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