Monday, February 11, 2008

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...

1 comment:

Fortune Park Hotels Ltd - Best chain of business & leisure budget hotels India said...

Facebook and Orkut are two of the most popular social networking sites. Both of them offer very similar features and capabilities.If we compare Facebook vs. Orkut.com from a market share perspective then it will show you that both are considerably behind MySpace with Facebook owning just over 11.5% of the market share and Orkut having less than 1%. Facebook has become very popular in North America over the last few months whereas Orkut is extremely popular in India.

Many people prefer Facebook to orkut as Facebook is a much more professional looking whereas Orkut looks somewhat unfinished,Facebook's Mini Feed feature is useful in seeing a quick snapshot on the latest happenings within your network,the ease at which you can customize layouts within FaceBook, especially the drag and drop option,the ability to supply how you know a person (through school, other friends, work, randomly, etc). This is especially interesting when you and one your contacts know the same person, but through different ways. Creating profiles in such websites for my business hotels, budget hotels, holiday packages is happening good in Alexa traffic details.