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Social networks to boom while net spend 'slows'?

Growth in internet advertising spend could slow in 2007, according to predictions from the US.

Trend analysis aggregator eMarketer suggests online advertising will grow from $16.4bn in 2006 to $19.5bn this year.


"This is 19% more than total spending in 2006," the agency reported last night. "This rate of growth is sharply down from the 30% or more that has been the norm for several years.


"However, even this reduced level of year-on-year growth would be considered spectacular for most industries."


eMarketer said worldwide advertising spend on social networks will more than double to $1bn this year. Its figures are based on data from the Interactive Advertising Bureau and PricewaterhouseCoopers.

The Internet Advertising Bureau in the UK says online advertising will have a "momentous" year. It reported that 2006 saw web ad spend grow to a projected 12% of media share, worth £2bn.


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