Social Media

Posted by Dan Malachowski, Product Marketing Manager

The Consumer
Consumers are still flocking to the social networks.  In June 2009, Twitter drove 44.5 million unique visitors worldwide, up 19% from May 2009.  In addition, Facebook recently passed Wikipedia to become the 4th largest Web site in the world behind Google, Microsoft and Yahoo!  In June 2009, Facebook gained 24 million unique visitors, pushing total unique visitors to 340 million.  At the end of Q2 2009, Facebook had 250 million registered users.  The site gained 50 million registered users in Q2 2009 alone.

The Advertiser
Advertising spend on Facebook is not currently lining up to consumer demand.  Advertisers will spend $230 million on Facebook in 2009, according to eMarketer.  On MySpace, advertisers are projected to spend $495 million in 2009.  Total 2009 social network advertising spend of $1.14 billion is down 3% from 2008 (eMarketer).  This is likely due to the economy and the loss of traffic on MySpace.

Future ad spend is expected to increase as advertisers shift from experimenting on the social networks to developing long-term strategies in the social space.  In 2010, eMarketer projects that social network advertising spend will grow 13.2% to $1.29 billion.  Facebook will likely be the beneficiary of additional ad spend in the next year, quickly catching up to MySpace.

This is Part 2 of a 3 part series on factors that are influencing consumer usage of the Web.  Stay tuned tomorrow for Part 3: The Rise in Smart Phone Usage.

Part 1: The Economy

August 11, 2009

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