Social Net Websites

Published on December 2016 | Categories: Documents | Downloads: 23 | Comments: 0 | Views: 138
of 8
Download PDF   Embed   Report

Comments

Content

July 12, 2006 Advertising and social-networking sites Business Week has published today a very interesting article on the current trend several brands are following: advertising on social-networking sites. The idea is to look for new opportunities on in what's known as user-generated content. Apparently the possibilities are huge, but the risks are also quite evident and worrying. For example, is the quality of the content good enough to associate a brand name with? "It would be naive to think that advertisers aren't concerned about these issues, but it hasn't had an effect on revenue so far" says Michael Barrett, who was recently named chief revenue officer at Fox Interactive Media.
To me, social networking websites appear to be a very promising place to advertise on. Teenagers are there, even young adults are there, so no wonder if brands are so attracted by MySpace & co. However I believe they need to learn how to sell their advertising spaces. I don't want my brand's ad to appear close to a "click here & get your visa" ad (or similar) and this is happening rather often on MySpace (just to make an example).

Social network advertising
From Wikipedia, the free encyclopedia

Jump to: navigation, search Social Network Advertising is a term that is used to describe a form of Online advertising that focuses on social networking sites. One of the major benefits of advertising on a social networking site (facebook, myspace, friendster, bebo, orkut...and many others) is that advertisers can take advantage of the users demographic information and target their ads appropriately.

[edit] The Social Network Advertising Market
Parts of this article (those related to section) may no longer be up to date. Please update this article to reflect recent events or newly available information, and remove this template when finished. Please see the talk page for more information. eMarketer predicts that $2 Billion will be spent this year (2008) on social network advertising worldwide and that this market will continue to grow - reaching $3.8 billion in spending by 2011[1]. However, a large portion of this spending is predicted to be coming from the US market. As Internet usage continues to grow in other parts of the world, and social networks continue to proliferate[2], advertising dollars on social networking sites outside of the US will begin to play a major role. There have been many claims that Social Network Advertising will revolutionize the online advertising market. Most famously, founder of facebook Mark Zuckerberg, announced that "For the last hundred years media has been pushed out to people, but now marketers are going to be a

part of the conversation."[3] No doubt social network advertising is a significant new way of reaching customers, but the market is far from being mature.
"In general, it's been improving but we still have a long way to go. Things have been going well this year...it's hard to predict where social networking will come out." - Sergey Brin (Google Co-Founder) [4]

[edit] Forms of Social Network Advertising
There are three major classifications of Social Network Advertising:


Direct Advertising that is based on your network of friends - This can be the most effective format but also causes the most controversy. An example is the facebook beacon project.[5] Based on an action your friend has taken, you might see a message in your news feed saying 'Bob has just bought a 'RadioHead CD from MusicWorld'. This can be an extremely effective mode as often people make decisions to purchase something or do something based on their close group of friends. However, there is also a lot of controversy surrounding this as it can be considered exploiting the personal relationships you have with your friends and also raises privacy concerns. Direct Advertising placed on your social networking site - This is a more traditional form of web advertising. Just like you see banner ads on many other sites, this is a similar concept, except on a social networking site. You can see these - for example - as a brick in the top right of myspace pages, or as a banner on the left of facebook profiles and so on. There are two differences however - One is that these social networks can take advantage of demographic data on your profile and hence target the ad directly to you. Secondly, these types of ads can also be placed by individual developers on their application pages through ad networks such as AdParlor. They have access to the same data and can generate income for application developers giving them further motivation to create apps and giving advertisers a more engaging way to reach out to these social networking users. Indirect Advertising by creating 'groups' or 'pages' - This is an innovative marketing technique in which a company will create a 'page' or 'group' that users can choose to join. They will use this to build up 'subscribers' or 'fans' and use this to market a contest, a new product, or simply just to increase brand awareness. These groups can quickly grow in numbers of subscribers which can become a very effective marketing tool. SOCIAL NETWORKING SITES GROW 47 PERCENT, YEAR OVER YEAR, REACHING 45 PERCENT OF WEB USERS, ACCORDING TO NIELSEN//NETRATINGS
Successful Sites Drive High Visitor Retention Rates NEW YORK– May 11, 2006– Nielsen//NetRatings, a global leader in Internet media and market research, announced today that April’s top 10 social networking sites collectively grew 47 percent year over year, increasing from an unduplicated unique audience of 46.8 million last year to 68.8 million in April 2006, reaching 45 percent of active Web users.





• • • • • • • •

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

MySpace, which has attracted significant media attention of late, topped the list with 38.4 million unique visitors and a remarkable year-over-year growth rate of 367 percent (see Table 1). Blogger took the No. 2 spot, garnering 18.5 million unique visitors and growing 80 percent year over year, followed by Classmates Online with 12.9 million unique visitors and a 10 percent year-over-year increase. Newcomer YouTube and the more established MSN Groups rounded out the top five, with 12.5 million and 10.6 million unique visitors, respectively. “Social networking sites are the reality television of the Internet,” said Jon Gibs, senior director of media, Nielsen//NetRatings. “The content is relatively inexpensive for publishers to produce, and social networking is not a fad that will disappear. If anything, it will become more ingrained in mainstream sites, just as reality TV programming has become ubiquitous in network programming,” Gibs continued. “However, again like reality programming, the concept of ‘reality’ alone, or in this case ‘social networking,’ is not enough. In this competitive marketplace, sites also have to provide consumers with distinct content they can identify with.” Table 1: Top 10 Social Networking Sites* for April 2006 (U.S., Home and Work) Site Apr-05 UA (000) Apr-06 UA (000) YOY Growth MySpace 8,210 38,359 367% Blogger 10,301 18,508 80% Classmates Online 11,672 12,865 10% YouTube N/A 12,505 N/A MSN Groups 12,352 10,570 -14% AOL Hometown 11,236 9,590 -15% Yahoo! Groups 8,262 9,165 11% MSN Spaces 1,857 7,165 286% Six Apart TypePad 5,065 6,711 32% Xanga.com 5,202 6,631 27%
Source: Nielsen//NetRatings, May 2006 * Note: This is a custom category and does not appear in Nielsen//NetRatings’ syndicated service.

Loyal Users The interactive nature of social networking sites keeps visitors coming back. MySpace enjoyed the highest retention rate among the group, with 67 percent of all March at-home visitors returning in April (see Table 2). MSN Groups and Facebook also benefited from a loyal following, with 58 and 52 percent of visitors returning month over month, respectively. Xanga.com and MSN’s new social networking site MSN Spaces rounded out the top five sites ranked by retention rate, with 49 and 47 percent, respectively. “The social networking sites that are seeing strong growth have developed a unique online presence that is continually refreshed by user generated content,” said Gibs. “This promotes ongoing consumer interest and visitor loyalty. However, while these sites have seen explosive growth over the past 12 months, this

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

is a fickle youth audience, and the masses that have rushed to these sites, could turn their attention elsewhere. The question that remains is ‘how strong are the social networks that consumers are building on these sites?’” Table 2: Top 5 Social Networking Sites ranked according to Retention Rate, April 2006 (U.S., Home Only) Brand Retention Rate (%) MySpace 67.04 MSN Groups 57.62 Facebook 51.73 Xanga.com 48.92 MSN Spaces 47.33
Source: Nielsen//NetRatings, May 2006

*********************************************************
Nielsen//NetRatings reports April 2006 data for the Top Sites by Parent Company and Top Brands. In addition, Nielsen//NetRatings reveals the Top Advertisers by Company for April 2006. Nielsen//NetRatings Top 10 Web Sites by Parent Company and Top 10 Web Sites By Brand, April 2006
Table 1. Top 10 Parent Companies, Table 2. Top 10 Brands, Combined Home & Work Combined Home & Work Parent Unique Audience (000) Time Per Person (hh:mm:ss) Brand Unique Audience (000) Time Per Person (hh:mm:ss) 1. Microsoft 112,596 2:00:15 1. Yahoo! 105,444 3:10:02 2. Yahoo! 105,907 3:09:58 2. Microsoft 95,777 0:45:25 3. Time Warner 99,204 4:51:35 3. MSN 92,786 1:38:53 4. Google 93,715 0:54:21 4. Google 92,120 0:52:48 5. eBay 60,050 1:50:37 5. AOL 70,433 6:11:06 6. News Corp. Online 55,736 1:38:43 6. eBay 53,465 1:53:00 7. InterActiveCorp 54,249 0:26:10 7. MapQuest 40,801 0:10:53 8. Amazon 44,765 0:21:37 8. MySpace 38,359 2:06:46 9. Walt Disney Internet Group 39,554 0:33:20 9. Real Network 38,183 0:47:48 10. New York Times Company 38,447 0:14:31 10. Amazon 37,854 0:19:37

Example: The data indicates that 38.4 million home and work Internet users visited at least one of the New York Times Company-owned sites or launched a New York Times Company-owned application during the month, and each person spent, on average, a total of 14 minutes and 31 seconds at one or

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

more of their sites or applications. A parent company is defined as a consolidation of multiple domains and URLs owned by a single entity. A brand is defined as a consolidation of multiple domains and URLs that has a consistent collection of branded content. Nielsen//NetRatings AdRelevance Top 10 Advertisers, April 2006 Top advertisers, ranked by estimated spending, are based on data from AdRelevance, Nielsen//NetRatings' advertising research service. An impression is counted as the number of times an ad is rendered for viewing. Top 10 Advertisers by Estimated Spending
Advertiser Total Estimated Spending Impressions (000) 1. Vonage Holdings Corp $37,962,100 16,897,475 2. GUS Plc $28,150,700 16,950,398 3. United Online, Inc. $21,842,000 7,244,330 4. Netflix, Inc. $14,370,300 7,173,759 5. LowerMyBills.com, Inc. $14,236,300 2,700,334 6. Verizon Communications, Inc. $12,987,200 3,836,843 7. Apollo Group, Inc. $11,513,400 3,235,280 8. NexTag, Inc. $11,508,200 4,743,402 9. E*TRADE FINANCIAL Corp. $10,337,500 2,708,051 10. Scottrade, Inc. $8,855,200 1,695,014

Estimated spending reflects CPM-based advertising online, and excludes search-based advertising, paid fee services, performance-based campaigns, sponsorships, barters, partnership advertising, advertorials, promotions and email. Impressions reported exclude house ads, which are ads that run on an advertiser’s own or related property and co-branding relationships. Example: An estimated 1.7 billion Scottrade, Inc. ads were rendered for viewing at the cost of approximately $8.9 million during the surfing period. About Nielsen//NetRatings NetRatings, Inc. (Nasdaq: NTRT) delivers leading Internet media and market research solutions, marketed globally under the Nielsen//NetRatings brand. With high quality, technology-driven products and services, Nielsen//NetRatings is the global standard for Internet audience measurement and premier source for online advertising intelligence, enabling clients to make informed business decisions regarding their Internet and digital strategies. The Nielsen//NetRatings portfolio includes panel-based and sitecentric Internet audience measurement services, online advertising intelligence, user lifestyle and demographic data, e-commerce and transaction metrics, and custom data, research and analysis. For more information, please visit www.nielsen-netratings.com. Editor’s Note: Please source all data to Nielsen//NetRatings.

###

Social networking sites grab big slice of Web ads
SAN FRANCISCO
Tue Sep 1, 2009 3:36pm EDT

RELATED NEWS

Fri, Aug 28 2009

• • • • •

Burglars using Facebook, Twitter to find targets: report Canada may reveal next step on Facebook privacy Frustrated tweets new headache for airlines RPT-FEATURE-Frustrated tweets new headache for airlines Facebook to face off with new Web rivals

Wed, Aug 26 2009

Thu, Aug 20 2009

Wed, Aug 19 2009

Fri, Aug 14 2009

SAN FRANCISCO (Reuters) - About one of every five Internet display ads in the United States is viewed on a social networking Web site like MySpace and Facebook, according to a new report.

TECHNOLOGY | MEDIA | FRANCE

The report by analytics firm comScore underscores the increasing prominence of social media sites in the Internet landscape and broadening acceptance of the sites by brand advertisers. It also illustrates the increasing competition between social media sites and established Internet companies like Yahoo Inc and Time Warner Inc's AOL which have long billed themselves as the top online destinations for brand advertisers. The study by comScore, released on Tuesday, said social media sites represented 21.1 percent of U.S. Internet display ads in July, with MySpace and Facebook accounting for more than 80 percent of those ads. "Because the top social media sites can deliver high reach and frequency against target segments at a low cost, it appears that some advertisers are eager to use social networking sites as a new advertising delivery vehicle," said Jeff Hackett, senior vice president of comScore. According to comScore, AT&T Inc, Experian Interactive and IAC/Interactive Corp's Ask Network were the top three advertisers on social networking sites in July. While social media sites have enjoyed a surge in popularity in recent years -- Facebook is now the world's fourth-most visited Web site -- some observers have questioned whether the sites can be effectively monetized. Because the content on social media sites is created by users, and could therefore prove racy or offensive, some have questioned the willingness of marketers to place their brands alongside that content. "They are sensitive to some extent, but nowhere near to the extent you might think," Sanford Bernstein analyst Jeff Lindsay said of advertisers. The price of placing ads on social networking sites is significantly less than on a Web portal like Yahoo or AOL, said Lindsay. The vast amount of Web pages available on social networks means that advertisers can purchase a massive volume of ad impressions at bargain prices. The strategy may not be ideally suited to smaller marketers, or advertisers seeking a direct response from their ads, said Lindsay. "For big, national brands it works just fine, just like TV," said Lindsay. "It's a huge, huge volume game." (Reporting by Alexei Oreskovic, editing by Matthew Lewis)
TECHNOLOGY

MEDIA FRANCE

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close