As I wrote before, despite not having much to show as profits today, Web 2.0 ventures especially social networks are drawing in some money these days as VC investments, acquisitions, equity transfers etc. Most of the Web 2.0 skeptics are seeing this recent high-profile acquisitions, deals and fundings as nothing but ridiculous.

However, this is not so. When Google entered into a deal with MySpace owners News Corp for placing its ads, many eyebrows were raised. However according to new research by eMarketer, social networks are going to make billions of dollars in the coming years. So much so that by 2010 it will rise up to $2 billion and more.

Marketers in the US are expected to spend $350 million this year, which is almost 25% higher than past forecasts. Likewise, estimates for 2010 are also up 16% to a whopping $2.2 billion. This means that social network ad spending will be almost 8.5% of the US ad market by 2010.

Other projections are that MySpace will obviously get the biggest cut with its revenues through ads projected at $525 million in 2007. Other top standalone networks like Facebook, Bebo etc will earn a combined $200 million. What’s interesting is that portal-owned networks like Google’s orkut or Windows Live Spaces will get around $95 million. Small niche networks like CrackSpace, Dogster etc will earn a combined around $45 million.

So, whoever are throwing there money in such ventures are playing it long. The investments are not very huge in the new social network startups but as things show now, a windfall in a couple of years is a very good possibility.

News: Mashable