04 February 2011

Social Networks: Making More $; Ways to Go--Though

The information about advertising revenue earned by social networks is confusing. One claims they are making more money; another warns that they are not working as effectively as search ads. eMarketer has the key to unlock the quandry: “Social networks are steadily increasing their share of total online ad spending in the US. In 2011, 10.8% of all US online ad spending will go to social networks. Next year, the share of spending going toward social destinations is expected to rise to 12.1%.

Social networks are increasing their revenue from advertising, but advertising on social networks fails to produce results advertisers get with search ads. See the iAd posting from today, as an example.

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