All social networks are heavily working on finding ways to earn money through some kind of advertising or marketing.
MySpace, one of the biggest (if not THE biggest) social network is already earning close to billion dollars in revenue.
Now they launched a new self serving ad platform. Ads are served on a CPC basis and you have to design them yourself. However, they’re not text ads, they’re display ads, which you can design yourself on the myspace website
The most interesting feature, however, is the targeting options you have. As Techcrunch writes:
The key to MySpaceâ€™s ad platform is their hypertargeting technology. Facebook allows targeting as well, although itâ€™s based on interest areas put in by users directly. So if someone says they like books, you can target ads to them based on that. What MySpace does is much different – they build out a profile of each user based on what they do on MySpace over time, with 1,200 different ways to categorize each user. So if you only want to target women who live in California between the ages of 25-30 who like motorcycles, i can. There are 2,842 of them on MySpace.
If that works properly – and if it is accepted by the community to be targeted in that way, it could well be a huge opportunity for myspace to increase advertising revenues!
Milk producers in Quebec put milk cartons in refrigerators in ten appliance stores around Montreal to take advantage of the moving season.
Apparently, that similar story about diapers and young fathers (who have to stay at home on a friday nite) is not true.
I missed the blogpost „social media will be like air“ by Charlene Li in March. But before not mentioning it at all, I’ll rather blog about it late. The article is about the fact that social media, especially the communities/social networks that make up these media plattforms, will be be ubiquitous in a few years. The son of my boss once asked, how people managed to access the internet before computers were invented. A rather smart question, once you think about it.
In a few years kids will ask us, why we used so many different platforms to socially engage with one another online. (And why we used platforms in the first place). Similar to why they will ask us, why we needed stationary big machines with huge screens to access the internet.
So the article of Charlene Li is worth reading in any case, but there was one point that I particularly noticed:
4) A business model where social influence defines marketing value. Todayâ€™s advertising models donâ€™t work on social networking sites â€“ thatâ€™s because simply targeting better on profile or social graph details is still the same old media model of CPM and CPC pricing. Whatâ€™s missing is marketing value based on how valuable I am in the context of my influence. For example, Steve Rubel is a highly influential person because he is an authority on social media, the people in his social graph tend to interested in his views, and they in turn have a great deal of authority as well. (Several people came up to me after the speech and said that this is similar to a „PageRank of people“, a very easy way to crystallize the idea.)
There are discussions about the future of your „typical target group“ already going on. The idea of establishing a „PageRank of people“ seems to be a viable solution. Discriminating it may be, but it provides a good indication of who to target – or should we rather call it: speak to?
In summary, Participation is no longer optional writes Steve Rubel, referencing Charlene Li’s post. And he ads:
The end result is that marketers will need to shift the way they approach communities. Static advertising is no longer viable. The solution is collaboration. Marketers will need to tap these emerging social operating systems to build meaningful connections through their sites and others before competitors do.
Engaging in „social networking“ with your brand/product advocates will be is a crucial part of the media mix. I just wonder, when this insight will have found its way into marketing plans of most companies?
Behavioural Targeting is an interesting science. Tracking what people do on the web, not what the claim to do during surveys.
Apparently, the folks in the US are now employing behavioural targeting for the presidential elections. One year beforehand, they already measure and track the online behaviour of their fans. Amazing!