Do Users Care About Ads on Social Networking Sites?

They say that ads must be targeted only at places where your potential costumers are available. While this statement largely holds true, there may be cases that even your potential customers would not be too keen about buying your product at one of the most crowded places in the world – the social networking sites.

Generally, users do not portray their actual behavior on social networking sites. They are often manipulative and pretentious to grab the attention of their friends or connections. Hence, you might also likely find that their behavior would be different on different social networks. Also, thinking that users would enjoy seeing your ad displayed on the site and would eventually purchase your product is more of an optimistic approach towards marketing, rather than a practical one.

Before advertising your product on a social networking site, you must ask yourself the following questions:

Twitter in No Hurry for Ads, Plans to Increase Staff

While most of the social networking firms are worried about gaining advertisements at the moment, there is one social network that is keeping its cool and focusing on building a strong foundation. Twitter, a barely 2 to 3 years old company, is still finding ways to earn money, but not considering too much about advertising at this point of time, according to a news story at Reuters.

Twitter is developing various add-on tools and services to cater to its professional set of users including businesses, in order to create a revenue stream for the company, said co-founder Biz Stone. However, he rebuffed the idea of selling ads on the site currently, in spite of the fact that ad revenue is crucial to manage a Web business while keeping services free for the users.

Besides stating that advertising is just not quite as interesting to the company, Stone mentioned few other reasons for not pursuing advertising.

Where Advertisers Go Wrong in Social Network Marketing

Though social network marketing has become a buzzword among marketers today, there are several who complain that the conversion rate is barely anything, just about 2% or so. Displaying ads on a social network doesn’t mean that viewers are going to click and make a purchase always.

It cannot be said what conversion rate is the best when marketing is carried out through social networks. However, companies aim to achieve high brand awareness and a favourable return on investment (ROI), which differs from one company to another based on their objectives.

Social Media – A Big Hit with the Entertainment Industry in 2008

Year 2008 brought gloomy days for businesses across the world with the great recession snatching away several jobs from people and shutting down operations of huge number of companies. One of the worst hit sectors was the financial sector, where even the topmost giants failed to stand tall on their feet. Companies saw tremendous cuts in traditional advertising expenses and diverting huge chunk into social media – the new form of marketing that has seen a paradigm shift in the way brands are promoted today. Certainly, one of the biggest buyers of the social media space has been the entertainment industry, which continued to swim against the mighty tides through creative and interactive approaches.