News
eMarketer: Don't believe ad hype
Categories: E-commerce
15 May 2008
Analyst, eMarketer, has said social networking sites will attract less ad spending than previously estimated.
Its figures sharply downgraded the spending on both Facebook and MySpace and it claimed, "the dollars don't equal the hype".
Debra Aho Williams, senior analyst, said: "Tapping into consumers' conversations and spreading brand awareness virally has proven more challenging than companies originally thought."
Its report reduced estimates for ad spend to Facebook, from £156 million to £136 million and MySpace, from £437 million to £388 million.
"The poor economy is partly responsible for the revised estimates, particularly for those companies who will cut experimental ad dollars first," eMarketer explained.
Advertisers have long considered social networking sites as 'walled gardens' in which they can target members and niche markets.
The head of economics publisher, Forbes.com, cautioned against the current trend to target networks, because "you're basically moving advertisers away from the content group, and that's inherently a bad idea", Mediapost reported.
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