Tuesday, March 25, 2008

Social Network Sites Do Not See Our Ads

The vast swaths of people at social networking sites are not ad friendly? Yes according to a post on bokardo. It also goes further to say that Google made a lot of money on Search advertising but the earnings has been low with advertising at MySpace and facebook. It is argued that people come to Search engines to search for some thing and that is why ads work so well. The contextual pointing of resources for what people are searching may get more clicks. Yes I agree but I also thing people come to MySpace and facebook searching for something. Perhaps those are personal and hard to make a subject of contextual Advertisement? I guess if you apply the same algorithm to both it might not work. Perhaps Google Advertising need to learn more social skills? Go get personal.

There’s been lots of talk recently about the ineffectiveness of advertisements in social media properties like MySpace and Facebook. During their recent quarterly earnings results, Google explained that they are not making as much money from ads on social network sites as they had predicted. Even though this was a blip on an otherwise stellar quarter, Google’s stock took a serious beating.

Why is this so? Why is it that Google monetizes so well on Search while having a hard time on social properties? Given an equal amount of views on Google vs. MySpace, shouldn’t they be able to get about the same number of click-throughs and thus ad revenue?

Bokardo article 

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