While more and more people are using social networking sites, eMarketer has revised downward its projections for U.S. social network ad spending. The research firm now expects advertisers to spend $1.2 billion on social networks in 2008, down from its previous projection of $1.4 billion.

Similarly, eMarketer expects spending to be $1.3 billion in 2009, down from its previously forecast of $1.8 billion. eMarketer attributes the lower numbers to the recession and slower-than-expected revenue growth at MySpace.

eMarketer has also revised downward its forecasts for MySpace and Facebook. Previously, eMarketer expected MySpace to earn $755 million and Facebook to earn $265 million in U.S. ad spending this year. Now, eMarketer expects MySpace to earn $585 million and Facebook $210 million.

Source: eMarketer, “U.S. Social Network Ad Spending Growth Lowered,” eMarketer, December 10, 2008

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