Social Network advertising to top $3bn

Advertising on social networking sites will reach $3.3bn this year, according to research by eMarketer, an online marketing research firm. This means that advertising revenues are up 31 per cent on last year’s $2.53bn, and eMarketer predicts a similar increase of 29 per cent to $4.26bn in 2011. Moreover, Facebook will increase its share of ad revenue this year, moving up to 50 per cent of the social networking advertising market as opposed to last year’s 26 per cent. Other competitors include MySpace (forecast to take 19 per cent of revenues this year), games and applications (forecast to take 8 per cent) and the remaining 23 per cent going to an assortment of other social networking sites.