Social network ad spending in the US could top $2 billion by 2010

Despite being nervous of user generated content, marketers are finally ready to embrace social networks, according to a new report from eMarketer. As a result, US social network ad spend is estimated to reach $2 billion by 2010, and, for the time being at least, MySpace stands to benefit most.

The report predicts that US spending will total $865 million by 2007 (up from $350 million), with MySpace taking the lion's share, at $525 million. The rest is then carved up between what eMarketer calls 'generic social network sites' which includes Facebook, Bebo, Piczo, and Friendster ($200 million), and 'portal' social networks such as MSN Spaces, Yahoo 360, and AIM Pages ($95 million). The remaining $45 million goes to more niche offerings.

With the larger social networks possibly reaching saturation point in the US, international growth will be a key factor. eMarketer estimates that social network ad spend outside of the US will rise to $260 million in 2007 (up from $95 million in 2006), and by 2010 is expected to reach $665 million.