Web ad tracker eMarketer cut its ad spending estimates for Facebook, MySpace and other social-networking sites amid growing questions over whether such sites will attract major ad dollars.
Advertisers in the US will spend $1.4 billion to place ads on social-networking sites this year, down from an earlier estimate of $1.6 billion, eMarketer said in a report released yesterday.
The firm also cut revenue projections for MySpace and Facebook, the two largest social networks. Spending on Facebook will total $265 million, down almost 13 percent from a previous forecast of $305 million.
The firm also cut its estimate for MySpace by 11 percent, to $775 million, down from $850 million. (The Post is part of News Corp., which also owns MySpace.)
While the weak economy is partly to blame, the bigger problem facing social networks is they’re still trying to figure out what kinds of advertising will work on their sites.
Facebook, MySpace and other social-networking sites boast massive online audiences, but they are having a tough time turning those eyeballs into ad dollars.
Last week, News Corp. said its Fox Interactive Media arm, which includes MySpace, would fall short of its $1 billion revenue target this year by about 10 percent.
Meanwhile, Facebook’s much-hyped advertising program, Beacon, is considered a bust.