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Study: Social network ad spending tapers off

By Published on .

New York—The recession apparently is having an impact even on the burgeoning world of social media, according to a new forecast by eMarketer. The research company predicts advertising expenditures on social media sites this year will drop 3% overall to $1.1 billion.

Ad expenditures from U.S. advertisers on MySpace, for example, are expected to decline 15% this year, to $495 million, according to eMarketer, as the News Corp.-owned social site faces increasing competition from Facebook.

Facebook is expected to buck the overall trend and see a 9% increase in ad spending this year to $230 million, according to eMarketer.

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