continues to pop. The money ‘graphs:
|Market research company eMarketer recently cut its estimate of advertising spending on the social networking sites, including Facebook, MySpace and Bebo, this year by $455 million to $1.3 billion. It said US advertising spending on Facebook will fall by 20 percent to $602 million.|
|IDC said advertisers are turning their backs on social networking sites because they have a lower “click-through rate” than traditional online ads. Only 57 percent of social network site users clicked on an advertisement and made a purchase last year, compared to 79 percent on the internet at large.|
|Experts at Deloitte said Facebook is suffering from the double-whammy of collapsing advertising revenue and the soaring cost of electronic data storage. Deloitte estimates that the cost of storing photos and videos on sites like Facebook has increased by more than $100 million a year.|
|“The book value of some social networks may be written down and some companies may fail altogether if funding dries up,” said Paul Lee, Deloitte director of research for technology and telecommunications. “Average revenue per user for some of the largest new media sites is measured in just cents per month.”|
I gave thumbs down to every ad I saw on Facebook until it quit showing me ads. Meanwhile, I’d be glad to track my use of facebook and pay something for the value I get from it.
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