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Tempering Expectations (Again) of Social Networks

Social networks. It’s the eternal question. How and when will their revenues really (or ever) match their popularity?

Looking at some recent stats from eMarketer doesn’t provide much hope for a positive answer.

First, this week eMarketer slashed their estimates for social networks because, as we’ve been arguing since September, experimental forms of advertising like social networks will be particularly hard hit during the recession.

But what’s interesting is when you look at the growth rates going forward. They’re slightly higher next year, but then after that they’re lower and they don’t break $2 billion…

…and after next year, the growth rates then lag overall online advertising…

…And they also decrease as a percentage of the overall online advertising.

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