US spending on virtual goods will reach $1 billion this year and $1.6 billion in 2010, according to Inside Virtual Goods.
A lot of that spending is from teenage girls dressing up their avatars on sites like IMVU, Meez, and IAC’s Zwinky’s.
But a good portion of it comes from players of social games, looking to make the games they are addicted to a little bit easier.
There’s a huge market for Zynga Poker chips, for example.
That’s great news for Facebook, because those social games makers spend a lot of money advertising their new releases.
CNBC has the report: