Ad expenditure projections cut for social networks

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New York—The global economic crisis is having an impact on social networking advertising, according to a new report from eMarketer.

The research firm projects worldwide social network ad spending will total $2.3 billion this year, representing almost half the growth it had previously projected. Worldwide, social networks are projected to see advertising spending growth of 17% this year. EMarketer had earlier forecast that growth would be 32%.

As for U.S. ad spending on social networks, eMarketer projects growth of about 10% this year to $1.3 billion. It had earlier forecast U.S. social-network expenditures this year would increase by 53%.

EMarketer anticipates that advertising on social networking sites will grow about 10% a year until 2013, to $3.49 billion worldwide.

—Christopher Hosford

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