Facebook Take Down of Myspace

Having mentioned the importance of social networking before, I felt like it may be a good idea to update you in just how big Facebook has really become. Going on what eMarketer’s “Social Network Ad Spending: 2010 Outlook”, the projections are looking great for Team Facebook when it comes to ad revenue and spending. Myspace, which is predominately geared more towards the younger demographic is very focused on music alone, whereas Facebook’s advantage may lie in the older demographic and more diverse marketplace provided.

According to the outlook, Myspace brought in about $490 million in worldwide advertising revenue in 2009 but is predicted to only bring in about $385 million in 2010. Facebook, however, is looking much better with $435 million in 2009 and a whopping $605 million predicted in 2010.

“Ad spending on Facebook is soaring while MySpace is tumbling,” the report says, “Facebook’s current strong performance is propping up the entire business of paid social network advertising in the US.” It goes on to reveal that “Facebook’s growth in the latter half of 2009 is the main driver of the change in the 2009 forecast,” and then goes into a little more detail, “In addition, the U.S. economy has shown signs of improvement in late 2009, along with cautious optimism about an online ad spending rebound in 2010.”

That’s a pretty clear indicator that if you have been dragging your feet about a Facebook business page, you may want to consider that again- this is gearing up to be big exposure and a very big money game. Facebook now has 350 million members, and the interesting thing about all of this is that the report goes on further- it’s not about the paid ads, though those are netting some big numbers. The bulk of the marketing implications lie in fan pages, applications and contests, actually- as I’ve mentioned, social networking is about brand loyalty and trust, and Facebook provides a great way to build both of those things. With Facebook, brands, companies and businesses have a unique opportunity to actively interact with their client base, fostering something much better than just simple marketing and traditional advertising have provided for them, thus far. This trend is showing more potential all the time.

“Concepts such as earned media, local social advertising, social search and social ad networks will be key themes next year,” said Debra Aho Williamson, author of the report and eMarketer senior analyst. “Advertising will not be the primary focus, but it will serve to drive traffic and engagement with the larger social network presence.”

This is all pointing to a great upswing in social networking as a marketing medium- and though I have seen some naysayers who think that it’s just a phase, seems to me that the numbers here are showing that phase it may be, but it is definitely a phase that is making many people alot of money. You may want to consider becoming one of them.