eMarketer has reduced its estimate for ad spending in social networks for this year. (from an estimated $1.6 billion spent on social network ads, to $1.4 billion). The pace of growth is also forecast to slow - it's still progressing, but not quite as quickly as they had thought previously.
In terms of destinations, Myspace continues to attract the biggest share, although Facebook is increasing its market share.
Interestingly, and despite the hype, widgets only accounted for $15m last year, and will continue to be relatively insignificant this year.
The reasons for this restatement? eMarketer blames two forces: the softening of the economy which has hit advertising in general.They also point out that even the leaders (Facebook and MySpace) have failed to develop a convincing ad revenue model.