Revenue for social networking sites Facebook and MySpace are down from earlier projections, according to EMarketer, an Internet market research and trend analysis firm based in New York.
For MySpace, a unit of Fox Interactive Media Inc., EMarketer lowered its May ad revenue estimate for 2008 from $755 million for the calendar year to $585 million. U.S. ad spending on MySpace through September 2008 was $25 million, and EMarketer predicted fourth-quarter ad revenue would be $160 million.
For Facebook, the privately held Palo Alto company, overall revenue in 2008 will be $250 million to $300 million, of which an estimated $210 million will come from U.S. ad spending, a growth rate of 45 percent over 2007, EMarketer estimated, citing various news reports that offered unofficial revenue estimates for the company.
EMarketer said that Facebook had hoped to generate $300 million to $350 million in revenue this year, and that 85 percent of the company’s revenues come from advertising.
Source: www.bizjournals.com