Thursday, November 27, 2008

Social Networking Services Growing, Advertising Not So Much

by Mark Walsh: The use of social networking sites will continue to grow, but advertising will not necessarily expand along with it, according to market research firm IDC. Framingham, Mass.-based IDC says in a new study that social networks will face slow ad sales until they can get users to do more than just keep up with friends. That's because members of social networks such as Facebook, MySpace and Bebo tend to click on ads less than the U.S. Internet users overall.

It's a no brainer really

"The fact that people use social networking services for communication puts them in a mindset that is less receptive to advertising than when they're using other Web sites like Yahoo or Google," said Karsten Weide, program director for digital media and entertainment at IDC."

I don't think it's that. I think online ad banners are in general shit and continually fail. Could be quite indicative to other forms of advertising- eg tv ads, radio ads, print ads- people just ignore and skim over them.

Maybe it's time to move on?

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