Yesterday we heard that the ad prices on social networks are getting cheaper. Today’s data point for social networking bears:
eMarketer took down its 2008 projection for ad spending on social networks to $1.4 billion from $1.8 billion. And it’s not the economy: the firm is also revising a more bullish projection for 2011, ratcheting projections down from $2.7 billion to $2.4 billion. Both earlier projections were made in December.
What’s changed in four months? Even Madison Avenue buyers who want to put money on Facebook, MySpace and the like are finding it harder than they’d like. eMarketer analyst Debra Aho Williamson explains: “The challenge is that all these new forms of advertising are more difficult to plan, measure and quantify than advertisers are used to, and that has impacted spending growth.”
The results: Last week News Corp. admitted that it was having a harder time moving MySpace inventory than it had anticipated, and revenues at its Fox Interactive Unit actually dropped from the previous quarter.