Social Network Ad Spending Keeps Rising(emarketer.com)

http://www.emarketer.com/Article.aspx?id=1005257&src=article_he

Projected $900MM in 2007, $1,380 in 2008.

1 comments

indicates to me that for the most part advertising is more important in social networks than the actual product. with that in mind I wonder why there are so many new companies trying to create "social networking" sites (unless they all have boatloads of cash and can compete with the advertising budgets of the big players).