Is Advertising On Social Networks Working?
Even as traffic to social networks increases, a revenue model still seems to elude most of them.
Advertising is pretty much what most social networks depend on, and it doesn’t seem to be working.
According to this eMarketer report, more than one-half of the US population surveyed uses social networking sites, but the ad dollars have not followed. More than 75% of social network site users logged in at least once a week and 57% did so daily. Moreover, more than 61% of those users spent more than 30 minutes per session on social network sites, and 38% remained parked for 1 hour or more.
However, only 57% of social network site users said they clicked on an ad in the past year, compared with 79% of all Internet consumers.
Despite phenomenal growth, social networks have yet to reach online advertising nirvana—that heady place where behavioral targeting tools aim for specific groups with offers specially tailored to members’ interests. It’s a place where marketers are able to serve ads, promotions and offers to friends of friends based on a pal’s recommendation, and where word-of-mouth marketing spreads like a flu virus in January to create waves of self-selecting consumers eager to interact with marketers.
Related posts:
- Advertising On Social Networks
- Social Networks To Attract Two-Thirds Of Netizens By 2014
- Will Google’s Patent Lead To Profitable Social Networks?
- Are More Asian Women Logging Onto Social Networks?
- Are Social Networks Evil?
Filed under: Digital culture
Like this post? Stay uptodate with the information that matters - subscribe to the Wildblueskies RSS feed.The views expressed here are my own, and do not reflect, or are related to the views of my organization.
“Is Advertising On Social Networks Working?”
For some – yes.
It will work for every business when their social network IS their advertising.
Social media is growing due to its increased acceptance and its pervasiveness (mobile, etc.) As it replaces legacy media (print ads, Yellow Pages, etc.) it will replace advertising and become the default form of search.
It will succeed over algorithmic “search engines” because it incorporates trust – not just ratings. It also supports affiliation and as such is a vehicle for involving the members in a relationship with the service providers.