Social networking sites will face growing advertising share

Some more news about the advertising market in 2007:
“ Marketers Increasingly Use Social Networking Sites “ writes clickz.

A new JupiterResearch report, „Social Networking Sites: Defining Advertising Opportunities in a Competitive Landscape,“ finds social networks to be a way for advertisers and marketers to break through the clutter and enlist brand advocates for their cause. This year will likely see an increase in the number of brands using social marketing to reach consumers.

While this is good for the companies providing the platforms, it is bad news for the users of these platforms, who, as I think, might get annoyed. And that means, it’s bad news for these platforms in the long run…

A study about user revolution

This seems interesting and obvious at the same time – a study about user revolution:

The report defines user revolution as a major trend that is happening primarily with consumers, who are taking control of content consumption and branding. The historically passive consumer is changing rapidly, not only becoming more informed and confident about purchase decisions, but also increasingly taking control of the consumption of information and content that used to be distributed by networks, studios, publishers and retailers […] We believe this will cause a significant rise in prominence of the Internet as a major content consumption and marketing medium.

The „news“ is from a report by Piper&Jaffrey. They list 12 key findings, such as predicted online advertising growth rates over the next few years (around 20% per year), the rise of communitainment (careful: new buzzword!), the rise of Usites (another one!) – sites with user generated content, and the increase of video ads.

At the end, they list the companies most likely to profit from these trends:

Google (and YouTube), Yahoo!, Disney, News Corp., Time Warner, Microsoft, InterActive, Facebook, Craigslist, Brightcove, Yelp, SINA Corp., Baidu, aQuantive, ValueClick, 24/7 Media, Netflix, Wikipedia, MobiTV, Digg and Hakia.

Driving down the streets of Paris

Adfreak points me to a nice Nokia Advergame. You are the driver of a French Lady who apparently needs to take care of some dubious business in Paris. So you drive her around the beautiful city:

Instead of re-creating the city using computer animation, they shot actual footage on the Ile St. Louis. While you’re driving, you can fool around with Nokia’s car kit by using its GPS features and changing the music.

On the site, it takes ages until the game has loaded…

nokia.jpg

And the game controls seem a little sluggish – but maybe it’s just my PC.
And it’s well worth it. The  grafics are brilliant, and having lived in Paris for a year, I actually recognised most of the spots.

Google will distribute videos with adverts

Google has partnered with Sony BMG, Condé Nast and Dow Jones & Company to distribute video content to third party sites. At the same time, these videos will show adverts. Here is a short description how it would work, found on the NY Times Website:

On the financial news site StreetInsider.com, for example, videos from The Wall Street Journal, a Dow Jones property, are running within ads on the site. In one, Emily Friedlander, a Wall Street Journal reporter, narrates a video feature on the TKTS booth in Times Square; Sam Schechner of The Journal speaks about marriage in TV shows; and Jonathan Welsh visits a motorcycle show.

After the three videos, a commercial from Pantene Pro-V, a hair conditioner, appears. In that case, Google shares the ad revenue with StreetInsider.com and Dow Jones.

This is a step of Google to move away from pure text and image based advertising to the segment of big money: TV adverts. And quite possibly, a first test of acceptance since they’re probably still working on all sorts of ways of how to monetise YouTube.

Founded as a text-based search company, Google’s early advertisers were smaller companies and advertisers who bought ads to generate direct sales rather than to build brand recognition.

Large brand advertisers still spend the bulk of their money on television advertising, but Google sees potential for them to spend more online through the use of video ads.

(via here and here)