Facebook will earn more than MySpace in 2010

Posted on December 23, 2009 by Marek

Rupert Murdoch will not be happy. According to eMarketer report, “Social Network Ad Spending: 2010 Outlook” shows that already in 2010 one year earlier than originally expected, Facebook earns more than MySpace.According to eMarketer Myspace advertising revenues this year will amount to 490 million U.S. dollars, but as early as next year will be lower by 21 percent and will amount to 385 million. Facebook’s revenues for a change this year to reach 435 million U.S. dollars, but in 2010, up 605 million which means a 39% increase.

“Facebook’s current strong position supports the entire business-related advertising in social media in the USA” – the report says.

Just in July, eMarketer anticipated that spending on advertising in social media in the U.S. to fall by 3 percent in 2009. New report provides for a 4 percent increase from 1.17 billion in 2008 to 1.21 billion in 2009. An even larger increase – for 7 percent – is expected in 2010 and reach 1.3 billion dollars.

The report shows that the increase in advertising spending is strongly associated with increasing the Facebook entry. It is significant also that the U.S. economy betrays signs of recovery.

Facebook faced a gigantic increase in the number of users from 200 million in April to 350 million today. In the U.S. alone in October Facebook had 97.4 million users which means 49% coverage (comScore).

At the same time, MySpace had 64 million users in the United States.