Social Site Ad Revenue Disappoints, Insiders Remain Positive
Recent earnings reports, research and punditry bode ill for social network advertising. Yet despite heightened concern about lackluster revenue predictions and monetization of sites like Facebook and MySpace, observers and insiders still see great promise.
Yesterday, eMarketer reduced its forecast for U.S. online social network ad spending. In December, the research outfit predicted the category would account for 5.7 percent of all U.S. online ad spending this year, and continue to increase each year, hitting 6.4 percent or $2.7 billion in 2011.
