Brands do best by helping users do what they likeIn
the social media arena, marketers know that traffic is high and
increasing, but social networks have yet to find a solid revenue
stream.
The disparity between usage and advertising is striking.
In 2009, more than 44% of Internet users will visit a social
network at least once per month, according to eMarketer. But social
network advertising represents just 5% of overall online ad dollars.
It’s no wonder that traditional online ad formats, such as
display, are not terribly successful. Social networkers are
preoccupied.
A November 2008 JPMorgan
survey showed that 78% of online social networkers were there to keep
in touch with friends. One-half of respondents said they wanted to
connect with old friends. Many more were engaged with content, such as
sharing photographs or music.
Marketers will get more leverage with consumers by providing
widgets and other applications to help people chat and create and share
content, as Ian Schafer, CEO and founder of ad agency Deep Focus, told
eMarketer.
“Social networking is not just about the display advertising,
it’s about the other things that you can do with it,” he said. “For
example, if my audience is active on Facebook, I want to be sure that I
am making it very easy for someone to share whatever content they’re
creating or consuming with all their friends.”
Capturing and making sense of all the activity on social sites
is daunting for marketers, admitted Debra Aho Williamson, senior
analyst at eMarketer.
But there are a number of methods for marketers to tap into these sites.
“Social networks are where consumers feel comfortable expressing
their feelings—good or bad—about companies, products and services,” Ms.
Williamson said. “Marketers, retailers and social networks have an
opportunity to tap into this stream of information-sharing.”
Both MySpace and Facebook are exploring e-commerce initiatives
that incorporate users into the process. For instance, at MySpace Music
users can purchase downloads of songs on friends’ playlists. MySpace
and Facebook have classified ads where friends can sell to other
friends.
“These offerings are only the beginning,” Ms. Williamson said.
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