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Advertising shortfall for social networking sites

The sky is falling in! US-based research firm eMarketer has downgraded the advertising spending forecasts of social networking sites such as Facebook, Myspace and Bebo from £2.4 to £2.15bn by 2011.

Despite the media hype and global popularity surrounding social networking sites eMarketer believes that the sector will fall short of projected ad spend forecasts by £250m in the next three years.

The news comes only a week after it was reported that Facebook is set to borrow $100m from TriplePoint Capital to expand the company's server farms due to rapidly growing user rates.

But it's not all bad news for the social networking heavyweights, as according to ComScore both Bebo and Facebook enjoyed record user numbers in the UK last month: Facebook now has 14.35m unique users while Bebo has 12.03m.

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