MARKETING VOX -- July 26 -- As social networking sites grow in popularity not only with users but also advertisers, they will begin to attract hundreds of millions in ad spend, and soon surpass the $1 billion mark. U.S. advertisers will spend some $280 million on social networking sites this year (mostly to create profile pages and sponsored promotions), or 1.7% of total U.S. online advertising spend. By 2010, social networking sites are projected to take in $1.86 billion, or 6.3% of all U.S. online advertising. MySpace is estimated to garner $180 million in U.S. ad revenue this year. Debra Aho Williamson, eMarketer senior analyst and author of the report "Social Network Marketing: Carving Out MySpace said,"user-generated content and word-of-mouth are two big buzzwords right now in online marketing, and social networks give marketers an opportunity to experiment with both." The average CPM is a mere 10c on MySpace.
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