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Worldwide Social Network Spending Climbs...Less Quickly

15 Juillet 2009 , Rédigé par Sandrine Publié dans #networkings

Dans emarketer

Debra Aho Williamson
Senior Analyst

Growth in social network advertising spending worldwide will take a hit in 2009, but not as severely as in the US.

eMarketer projects 9% growth in worldwide spending in 2009, to $2.2 billion. That is down from the 17% growth eMarketer forecast in March 2009.

Online Social Network Advertising Spending Worldwide, 2008-2011 (millions and % change)

The good news is that worldwide social network spending is expected to shoot up again next year, rising an estimated 18% to $2.6 billion. 2011 will see an additional 12% increase, to $2.9 billion.

Changes in the US market are the primary reason for the forecast revision.

eMarketer now estimates that US social network spending will slide 3% this year, as marketers continue to cut back on ad spending during the recession and MySpace, once the leading social network in the US, loses traction.

In fact, non-US social network advertising spending is forecast to grow 27% in 2009. The US has led the way in the development of social networks, but entrants in Europe and Asia are ramping up. In addition, US-based social networks will see an increasing portion of their revenues from international operations.

Online Social Network Advertising Spending Worldwide, US vs. Non-US, 2008-2011 (millions and % change)

Strong social networks outside the US include mixi in Japan, Cyworld in South Korea, VKontakte in Russia and QQ in China.

Worldwide ad spending on MySpace is expected to fall 14% in 2009, to $520 million. Facebook spending is projected to rise 20% worldwide, to $300 million.

US, Non-US and Worldwide Online Advertising Spending on MySpace and Facebook, 2008 & 2009 (millions)

Together, Facebook and MySpace will account for 64% of US social network advertising spending in 2009 but just 38% of worldwide spending.

For more on the future of social networks, read Ms. Williamson’s latest eMarketer report, Social Network Ad Spending: A Brighter Outlook Next Year.

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