Social Network Advertising: Less Than You Think

A reminder, via eMarketer, that hype aside, advertising spend on online social networks is still relatively modest: About $960 million in the U.S. this year, (and merely another $300 million in the rest of the world) — less than 5% of the total U.S. market.

Keep in mind that most of those dollars are from guaranteed deals from Google and Microsoft, who have multiyear pacts with MySpace and Facebook, respectively — and by all accounts, both GOOG and MSFT made those commitments for strategic reasons, not financial ones.

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