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Monday, December 17, 2007

No Stopping MySpace and Facebook

Social networks will nearly double their online ad revenue next year according to eMarketer. The co-kings of kaching, MySpace and Facebook will suck up 70 percent of the estimated $2.2 billion to spent on social sites, according to the survey.

This is an industry that jumped straight to consolidation -- there wasn't the usual 3 years of weeding out the also-rans as MySpace-Facebook jumped in and quickly set the rules.

I found this line from the Mediapost coverage surprising in its editorial tone, referring to the estimated $1.6 billion that MySpace and Facebook will largely share in the U.S.:

That's still a fraction of overall U.S. online advertising, which eMarketer estimates will hit $21.4 billion this year.


Only a fraction? Social nets will represent 7.5 percent of U.S. ad dollars next year, after just a few years of existence. That's very impressive considering we're talking about basically 2 websites out of the universe of millions of revenue generating sites.

Social nets will never seem as strong as they are today as growth will quickly slow down and social networking features are absorbed by other websites and corporate versions will link large companies or industries across the globe. Facebook will eventually settle into a bout a $2-3 billion company, not the $15 billion that Microsoft estimated.

By John Gartner at 09:38 AM | Comments (1)

(1) Thoughts on No Stopping MySpace and Facebook

Go Myspace!
Facebook is slowly running out of money.

Comments by Paul : Tuesday, December 18, 2007 at 01:53 PM

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