The fast-growing, fast-evolving social networking phenomena continues to expand in terms of users and ad revenues, projected to reach $3.1 billion in 2011. In defiance of uncertainty in ­the wider economy, advertising on social networking sites (SNS) increased 705% from 2006-11. Growing use of smartphones, tablets and laptops have helped SNS become multi-faceted hubs for social connectivity, especially for teens and young adults. Facebook is the dominant force, now the most visited website in 2010 and reaching global membership of 750 million in 2011.

However, with Google rolling out Google+, the market is poised for a showdown between two internet behemoths. This report explores these and other major trends in the market, ranging from underlying drivers to major innovations. It examines the revenue and advertising strategies of Facebook, as well as other key players such as Twitter, LinkedIn, MySpace, My Life, Tumblr, and foursquare. It also examines which sites are most popular among different demographic groups and how smaller SNS that focus on combining feeds, blogging, dating and gaming.

Custom, up-to-date consumer research among teens (12-17) and adults (18+) is analyzed by demographic variables to probe the behavior, preferences, interests and attitudes of user groups. Questions examined include:

Which demographic groups are most likely to access SNS? How many friends/contacts do they have on their most widely used SNS? Which SNS do they use and how often?

Which groups access SNS through mobile phones or tablets and what activity do they undertake using these devices?

What are the attitudes relative to advertising on SNS? Which groups are most open or resistant to advertising? Which are most likely to click on ads?

Which groups use Facebook Questions, Credits and movie rentals? Which are most likely to fan or follow brands? Which use games, apps and virtual gifts?

Which groups are most likely to seek out sweepstakes or free samples on SNS? To what extent do different user groups use SNS to visit company profiles, spread information about causes, attend events, advance their career, find dates or promote their own music or art?

Which are most likely to upload, link or statuscast photos and videos or in relation to news stories, entertainment, games, brands and products?