By Michael Awotedu
This article discusses the challenges of monetizing social networks. Compared with 79% of all internet users, only 57% of social network users said they clicked on an advertisement in the past year.
Excerpts –
‘“Search continues to be the most lucrative advertising strategy. Users are specifically seeking information in that arena. On social networks, people are primarily concerned with communicating with their friends, not looking to buy items or services.”’
Despite phenomenal growth, social networks have yet to reach online advertising nirvana—that heady place where behavioral targeting tools aim for specific groups with offers specially tailored to members’ interests. It’s a place where marketers are able to serve ads, promotions and offers to friends of friends based on a pal’s recommendation, and where word-of-mouth marketing spreads like a flu virus in January to create waves of self-selecting consumers eager to interact with marketers.
http://www.emarketer.com/Article.aspx?id=1006775