Social Media Advertising

Search engines had been displaying banner ads since the beginning--even keyword-based ads. But it was Google that showed just how profitable Internet traffic could be. Because they made their AdWord program so simple and easy-to-use, with no minimum buy, everyone who wants to can run ads against relevant search terms. Once Google opened up search advertising, the rivers of cash came rushing in.

AdWords are great, but they are not perfect. After all, search ads are based on fairly simple search words and phrases. But search terms, by themselves, suffer from a lack of knowing the precise intent of the searcher. When I include the word "records" in a search, the engine can't know whether I mean old fashioned LPs, world records, or records in a database. So what ads should they display against my search request? Though AdWords are very effective, they could improve. Understanding the intent of the search and adding individual demographics and personal interests of each searcher would allow a degree of targeting yet unheard of in search advertising. This is what social media has to contribute to online advertising.

While people are enjoying the benefits of Facebook they are also establishing a base of information containing their demographics, social circles, preferences, interests, purchases, and more. Based on this information, a site like Facebook can offer an unprecedented degree of individual targeting for advertisers. Additionally, because social media can offer another dimension to marketing, they can potentially reap the benefits from word of mouth recommendations. Adding a personal recommendation on top of hyper-targeted, individually validated advertisements can be a profoundly powerful advertising platform.

And don't think Google's not paying attention. They recently announced an open source social media platform called OpenSocial. If OpenSocial becomes the dominant open source platform for building social media sites--and based on the number of early participants, it very well may--this could put Google at the epicenter of social media.


I, for one, am excited about the improvements that the Internet is bringing to marketing. I understand that maintaining sites like Facebook cost money. I know I need to pay up one way or the other. One way I might have to pay is the subscription model (like LinkedIn's professional upgrade options). The other way to "pay for" my use of great web services is my willingness to receive advertising. This is no different than how I get to enjoy my favorite television shows (if you want to know what some of them are, check out my Facebook profile). In fact, with TV I have to pay both ways. I have to pay my DirecTV bill and watch ads. I don't mind the exchange. But I sure would appreciate avoiding irrelevant ads, and no doubt advertisers would like to avoid that too. They'd much rather concentrate their spending on consumers that might actually buy their product than waste their efforts on completely uninterested viewers. But as it is today, targeting is very generalized so I have to endure ads for dating services (even though I'm married) and snow blower ads (even though I live in North Carolina). Frankly, I'd rather see ads for a new MP3 player with increased storage capacity, or HD television and movie download services. These I might buy.   next >