NEW YORK, NY -- (MARKET WIRE) -- 05/09/07 -- Social network marketing is a powerful concept that will not go away. The underlying idea has had a profound impact on the way people use the Internet, heralding the rise of user-generated content as a buzzword. Social network marketing will have a similar profound impact on advertising, both online and offline.

Now is the time for social networks to fulfill the promise of social network marketing by showing that the key concept of marketing "one-to-one-to-many" provides real results, says eMarketer's report "Social Network Marketing: Where to Next?" A study sponsored by MySpace, issued in April 2007, begins to fulfill that need, but more is required.

eMarketer has increased its estimate of US ad spending on social networks to $900 million in 2007. The increase comes from two factors: increased revenue projections for Facebook and additional spending on niche and marketer-sponsored social networks. Between 2007 and 2011, US ad spending on social networks will grow 180% to $2.5 billion.

MySpace, still the largest player by far, is estimated to generate $525 million in the US this year. Facebook is expected to generate $125 million and both should continue to see healthy revenue increases. Combined, the two account for 72% of US social network ad spending in 2007 and 75% in 2008.

Companies have latched on with religious fervor to the notion that consumers want and need to be socially connected online. eMarketer remains bullish on the core aspects of social networking -- the ability for people to express and share their interests online and connect with one another. The outpouring of posts in the wake of Virginia Tech is a clear indication of the role these sites play in the lives of young people.

"But issues are beginning to surface," says Debra Aho Williamson, senior analyst and author of the report. "Is there enough interest among consumers to support so many ventures? Does every company need a social network? Indubitably, many of the hundreds of social networking ventures pouring into the market will not survive."

Also in the report:

--  What is happening internationally with social networking?
--  What works and what does not in social network marketing?
--  How are video and mobile playing into the space?
--  How do virtual worlds such as Second Life factor into the mix?
    

About eMarketer

eMarketer is "The First Place to Look" for market research information related to the Internet, e-business, online marketing and emerging technologies. eMarketer aggregates and analyzes e-business research from over 2,800 sources, and brings it together in analyst reports, daily research articles and the "eStat Database" -- the most comprehensive database of e-business and online marketing statistics in the world. Visit www.emarketer.com for more information.

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