The failure of social networking sites – such as Facebook and MySpace – to translate their global popularity into ad revenue has led research company eMarketer to downgrade ad-spend forecasts for the social-networking sector by around £250 million (E312m) by 2011. eMarketer said that “in spite of the media hype” around social networking worldwide-advertising spending has “not met expectations”.

The company has downgraded its projection for worldwide ad-spend on the sites to £2.15 billion by 2011, from a previous forecast of £2.4 billion.

However, eMarketer said that the growth rate of global ad-spend on social networking websites from a low base is impressive, with a 72 per cent year-on-year rise forecast for 2008 – taking the figure to £1 billion.

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