Couple of charts showing ad spend rate throughout the next few years. The amount of spend has dropped off from the initial rates forecast last year, as monetization has dropped off
At $1.4 billion, social network advertising will make up 5.5% of total US online ad spending this year. However, after 2010 eMarketer projects that social network sites will receive a lesser share of total spending, falling to 5.1% in 2012 after a peak of 6% in 2009-2010.
It seems as though the major social networks are not doing as good a job for marketers as other websites that cater to specific types of visitors. These large Social networks are akin to general audience advertising. Again, this is where IPMM sees the value of branded niche media properties, catering to users who look for a specific kind of content and relationship in the online experience. In conclusion, 90% of online ad spend is going somewhere else. Somewhere that advertisers feel they are getting more ROI.
Imagine you could just zap your profile at myspace and populate another social network. Or drag your entire friends list over. Its coming soon, and it looks to be the future of interchangeable data on social networks. As compared to google's Open Social, this is not about widgets processing new data exchanges between new sets of connections, but rather a way of grabbing all your data and moving it.
MySpace doesn’t make money off any of this directly. It doesn’t charge money to the sites that use the profile information or place ads on them. But as many people see the importance of having an online profile to express themselves to friends and strangers, the battle is increasingly about becoming people’s primary profile, just as companies fight to be people’s main e-mail provider.
This is what is most important, becoming people's primary profile.
Zivity Takes $7 Million In Venture Financing For Adult Content Social Network
Zivity is an adult content social network and user generated content site (they call it “Promoting Beauty 2.0″). It has the distinction of being one of the first adult content startups to be backed by venture capital via a $1 million seed round in 2007, and it caused quite a stir at its official launch at TechCrunch40. As we mentioned last month, mainstream press is starting to pay serious attention to them.
The company will announce a new $7 million round of financing in a deal led by both BlueRun Ventures and Founders Fund. The company has now raised a total of $8 million. The social networking experience that these VCs add is substantial. Founders Fund is an early Facebook investor. Both are investors in Slide.
John Malloy of BlueRun Ventures and Luke Nosek of Founders Fund join Zivity co-founders Scott Banister, Cyan Banister (who also models for the site) and Jeffrey Wescott on the company’s board of directors.
We've known for months about this, and as photographers, we've joined and used the system. WHAT DO WE THINK OF THIS? The business model is going to have to change. The problems they are TRYING to solve is somewhat real, but the solution they offering will not work. It will FAIL and probably morph into something different at some point. We consider our modelvanity brand a superior platform once we're up and running fully.
What can IPMM learn from what is taking place at facebook?
Oh, and she hopes to develop a new ad scheme aimed at the billions that marketers spend on branding ads every year. "I'm hopeful that we play a significant role in pushing the envelope [with] awareness building," she says. "How we get there, I don't think we know yet" says former Google's Sheryl Sandberg COO Facebook.
This statement sums up what the widgets didnt solve, and beacon cannot do, which is sell advertising. We at IPMM believe that even when you have revenues of 140 million for a company valued in the billions, your making a cardinal mistake. THERE IS NO BRAND WITH FACEBOOK. It stands for nothing in the eyes of its users. Its a new utility, used to converse and connect and waste time. Its the "Electric Company" of GenX. And, There is no real experience, unlike a game from Nintendo.
Brand means everything, and when users/consumers connect to it and make it their own, limitless possibilities exist for attracting the right kind of advertiser and monetization.
And what about those widgets, and SLIDE.com's 500 million valuation at 50 million users..
Levchin offers two answers. The first has to do with the changing nature of the Web, where social networks are the fashion of the day. Online search - which is where Google does most of its ad business - today accounts for only 6% of what people do online. This leaves a lot of contested ground.
"The metrics for success," says Levchin, "are going to shift away from who can provide the most reach toward who is paid the most attention."
Still, engagement seems to be catching on. Nielsen has added a new metric that evaluates the amount of time users spend on a site. Google has a cost-per-action option, and in early March, Microsoft (MSFT, Fortune 500) introduced something it calls "engagement mapping," a program that measures online interactions in branding campaigns.
A new study by Simmons, a unit of Experian Research Services has found that consumers are 47% more engadged by ads that run with television programs v… more
Saying he has been inspired by music, John is about to make his newest predictions. He delves into conversation marketing, as his companies core competency. Revealing that 27 full time brand advertisers sell branding through his 150+ network sites, he also explained how sometimes it takes a few quarters for the new sites to see ad income. At 12:30 he talks about two types of media, Mercenary and Missionary. He prefers missionary (passionate independent media) over mercenary. He speaks that news has a new approach to make it "straight." At 30:00 he begins talking about experiences around the events and the advertising that can go with it. Something I have been preaching for several years. Here is the video, by the Scoble Show.
Name: Oscar Toscano for IP MicroMedia Home: Southern California, United States About Me: New Media business Executive building disruptive media systems Visit my Personal BLOG
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