Social Media Ad Spending Will Hit $3.3 Billion in 2010

Social networks worldwide will rake in $3.3 billion in advertising dollars this year, according to updated estimates by eMarketer. That’s a 31% increase from 2009′s $2.5 billion. And Facebook is the biggest winner — 39% of that amount, or $1.3 billion, will go to the social-media juggernaut.

In the U.S., social ad spending is expected to rise 20% to $1.7 billion and Facebook has an even larger market share — 50 percent of that amount ($835 million), versus a 36% share last year (when its U.S. advertising revenues were estimated to be $500 million out of a total of $1.4 billion).

The big loser in social ads this year? MySpace, whose share is estimated to drop from 32% in 2009 ($445 million) to 19% in 2010 ($323 million).

Online social games and applications are becoming a more important part of the mix. Advertising is not a primary revenue stream for game companies like Zynga or Playdom, but their large audiences are interesting to marketers. eMarketer expects companies like these to attract $293 million in spending worldwide in 2011, up from $220 million in 2010.

Twitter, which finally launched its ad business earlier this year, is part of eMarketer’s forecast for the first time. Although worldwide ad spending on Twitter will be under $50 million in 2010, the potential for 2011 and beyond could be dramatic if its “resonance” model of measuring advertising effectiveness works.

Here’s a nice infographic from Flowtown that does a great job of summarizing all of eMarketer’s data:

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