Tuesday, September 4, 2007

Adotas » Brand Ads Steer Clear Of Social Sites

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Adotas Brand Ads Steer Clear Of Social Sites
Written on September 4th 2007 Author by Editor |

In a report put out by IDC called, “Social Networking Services in the US - Popular, Yes, But How to Monetize Them?”, the firm projected that social networking ad revenues in the US would hit $1 billion in 2007, an increase of over 50% from 2006’s $400 million.

Only advertising seems to make social networks attractive to major media firms and portals; whereas e-commerce and subscriptions did not substantially contribute to the revenue accumulated by social networks according to emarketer.

IDC program director Karsten Weide was quoted in a statement to say, “Social networks cannot guarantee a brand-safe environment. Advertisers don’t want to see their ads displayed alongside illicit content, for example. The dilemma for social networks is if they start to control what content users can post, they will lose popularity, which is what attracted advertisers in the first place.”

The reported summarized that for as popular as social networks may be, there is the potential that they may not see big scale brand advertising because of these issues.

My Take

It will definitely take some creative thinking to monetize social networks...

Any ideas????

Tuesday September 4, 2007 - 03:13pm (EDT)