SOCIAL MEDIA ADS WILL ALSO SUFFER FROM THE CRISIS
Posted: Sun Jan 19, 2025 3:47 am
The difficulties faced by News Corp's social network MySpace are the main reason eMarketer is changing its 2009 forecasts for spending on these platforms, saying that spending on this channel will fall by 3% in the United States compared to the previous year.
Advertising investment in social networks had grown by 127% in 2008 and by 33% last year, where 1.18 billion dollars (867 million euros) were collected, while in 2009 it is expected that the advertising data revenues from this type of platforms will be limited to 1.14 billion dollars.
The magazine has since changed its predictions, saying it had not expected the market's leading network, MySpace, to collapse in the market, receiving 15% less advertising investment and 8% less traffic.
This decline does not mean that other networks are also having a hard time, since its competitor Facebook is expected to increase advertising revenue by 9% in 2009 and according to Forrester surveys, 53% of advertisers plan to increase their spending on advertising for social media platforms this year.
This market projection is due, according to the publication, to the economic situation but above all to the crisis facing Rupert Murdoch's darling, who fired MySpace CEO Chris de Wolfe in an attempt to change strategy and take advantage of the experience of Owen Van Natta, a former employee of Facebook and Amazon.
However, even though the numbers are not good for MySpace, its performance outside the United States is still better than that of Facebook, although this could also change due to the explosive increase in users of the Harvard-born platform around the world.
Advertising investment in social networks had grown by 127% in 2008 and by 33% last year, where 1.18 billion dollars (867 million euros) were collected, while in 2009 it is expected that the advertising data revenues from this type of platforms will be limited to 1.14 billion dollars.
The magazine has since changed its predictions, saying it had not expected the market's leading network, MySpace, to collapse in the market, receiving 15% less advertising investment and 8% less traffic.
This decline does not mean that other networks are also having a hard time, since its competitor Facebook is expected to increase advertising revenue by 9% in 2009 and according to Forrester surveys, 53% of advertisers plan to increase their spending on advertising for social media platforms this year.
This market projection is due, according to the publication, to the economic situation but above all to the crisis facing Rupert Murdoch's darling, who fired MySpace CEO Chris de Wolfe in an attempt to change strategy and take advantage of the experience of Owen Van Natta, a former employee of Facebook and Amazon.
However, even though the numbers are not good for MySpace, its performance outside the United States is still better than that of Facebook, although this could also change due to the explosive increase in users of the Harvard-born platform around the world.