Advertisers Love Social Networking, Apparently, So Where's The Money?
from the invisibility dept
There's a flurry of activity around social-networking sites as they try to figure out how to make some money, and it's matched by advertisers that don't want to miss out on the next big thing. But they're casting a cautious eye over the sites, with much of that concern put down to worries that their ads will be displayed alongside objectionable user-created content, or that they'll get caught up in the blame game surrounding the sites' supposed dangers to children. Some sites like MySpace are trying to figure out way to offer advertisers a "safer" experience, but it's worth wondering if their reticence isn't solely based on fears about the content, but rather also if the ad space is actually worthwhile. Despite their huge amounts of traffic, the ad rates social-networking sites charge are reported to be very low, perhaps an indication of the results they deliver. If they delivered high clickthroughs and conversion rates, would advertisers be so concerned? So as the bubble-esque hype surrounding these sites carries on, it remains murky just how they'll turn their massive traffic into massive revenues.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
[ link to this | view in thread ]
The only thing that may generate revenue for networking sites is offering a non-popup and advertising version that doesn't take 15 minutes to load with a broadband connection (and also doesn't remind you that there are retards getting degrees in marketing but learning absolutely nothing).
[ link to this | view in thread ]
[ link to this | view in thread ]
advertisers dont want
b] people with a life
[ link to this | view in thread ]
[ link to this | view in thread ]
[ link to this | view in thread ]
Re: advertisers dont want
"advertisers dont want
a] intelligent consumers
b] people with a life"
That's quite spot on in fact. There's a fundamental clash of psychological values going on in this marriage, the kind of minds who engage in social networking are exactly the kind of people advertisers should avoid. Unfortunately they just see any crowd of people gathered in a group and they get an instant hard-on.
Social networking is a p2p model, by definition. The fact that people happen to congregate on a server like MySpace or whatever is entirely accidental to the phenomena, they could just as easily move somewhere else next week.
What keeps them coming back to use that particular server? Well the fact that it is "My Space" - and not , say, Pepsi Colas space?
That's the nub of it really. Advertising is anathema in this mindset.
[ link to this | view in thread ]
The scary thing for me
How did we ever manage to live prior to these places???? Was our old methods of calling people, having friends you could actually get together with instead of only virtually? Do we really want life via a plasma screen over reality? I for one hate my computer, my cell phone and if I could i would get a job planting trees in the Amazon....oh for the advent of child support suppresion....
[ link to this | view in thread ]
Social networking - new sites?
[ link to this | view in thread ]
Social Networks + Social Search = $
http://www.internetnews.com/ec-news/article.php/3620211
I think Mansfield has an interesting point.
[ link to this | view in thread ]