Social Networking Advertising

Social networking and the advertising money behind it are growing very, very fast. Ad spending on social networking sites like MySpace and Facebook is going to grow from $1.2 in 2007 to $2.1B in 2008.

However, a recent article in Business Week talks about the growing disillusionment of online ads. Average time spent on sites is actually decreasing. And click-thru rates are anemic - averaging as few as 4 click-thrus in 10,000 page views. While there is promise in the increased targeting (I like running, therefore my friends should get Asics running shoe ads on their Facebook pages), I'm still not sure banner ads will continue to provide growth in this market.

Perhaps what is needed is something even more open to unlock the power of social networking for web sites other than MySpace and Facebook...

Comments

Post a Comment

Popular posts from this blog

Ringside Winding Down

A year ago, a group of us met in a pizza parlor to discuss how we could bring the social web to every website and business. In January, we launched Ringside Networks with seed funding from Matrix Partners, one of the best VC firms in the country. By the end of March we released into open source an initial beta of our Social Application Server – a very ambitious project. We got some very positive reviews on our approach, our implementation and the need in the marketplace for every website to become social. We were ready for our Series A round of funding, and in late May we received a number of term sheet offers from the very best VC firms. As we were about to finalize our funding, one of the biggest non-evil Internet companies asked if we would have interest in being acquired instead. After a lot of thought and debate, we decided that the larger company would enable us to get our technology to market sooner and with more impact. The story sounds almost too good to be true. And it w
Read more

Capitalism vs. the Three Legged Stool

Image
Wikipedia defines: " Capitalism  is an  economic system  in which trade, industry and the  means of production  are controlled by private owners with the goal of making  profits  in a  market economy ." This definition has always bothered me. I prefer a different model where there is equal recognition of the three primary drivers behind the success of a company: Owners Employees Customers I like to think of it as a three legged stool, where each leg is as important as the other.  One gets too large or small and the stool tips over. The free market is supposed to take care of Employees and Customers.  Employees because the Owners will create so many jobs that due to supply and demand, employees will receive competitive pay.  Customers because if the owners are not building the right thing, then they can go elsewhere. As someone who has helped to build about 10 startup companies now, I have seen the power in making these three stakeholders equal partners.
Read more

Marrakech

Image
I just returned from a great trip to see Allison since she is doing a semester in Toulouse, France her Junior year. It is really cool to see your daughter grow up so well. We did a long weekend adventure to Marrakech. Allison has done a lot of studies about the French colonization of Northern Africa and some of the modern implications of that with immigrants to France. She was also supposed to be taking a course in Arabic, but alas the French are on strike so that class has met rarely. We stayed in a Marrakech Riad - Riad Dar Najat. This is a picture of Allison relaxing on their open lounge area on the top floor. Getting a good Riad is pretty important. Riad's are the equivalent of American Bed & Breakfasts. The streets in Marrakech are lined with walls typically without many windows. It is kind of hot and dirty. You open the door to the Riad and it is like an oasis! Open courtyard to the sky and typically three floors with a couple of bedrooms on each floor and an
Read more