Home > Uncategorized > Social Media equals no brainer

Social Media equals no brainer

The Ad Week article I found talks about how the “friending” and the “sharing” aspects of social media is where the money is.

The article explains that the real money does not reside in the advertisements found on Facebook and Twitter but rather in the data produced by the social aspect of the sites.

The rationale is simple. Internet users are now spending 22 percent of their time in social media, and Internet activity leaves behind a trail of data: what people like, what they share, and who is connected to whom with similar tastes. For publishers and application makers, licensing all that social data is a no-brainer — found money for what is in essence a waste product of their services. For advertisers, social data is a potential boon: a way to find likely customers based on their sharing and communication habits.

For some reason, Facebook is taking a “backseat” to this leaving new startup companies to take the bait.

Facebook, the obvious key player in the social data game, is currently taking a backseat to scrappier startups, both to avoid overstepping privacy sensitivities and to focus on other growth areas. That’s left an opportunity for new companies like Media6Degrees, 33Across and RadiumOne, which are licensing large amounts of data from instant-messaging clients, sharing applications and blog services in order to piece together customized social networks for ad campaigns. For instance: A campaign for Nike based on social media data will show relevant ads to people connected to Nike customers, on the supposition they’re likely to have similar tastes.

Companies are collecting data in order to target ads outside social media sites and are using the data to build awareness and consideration.  The question here is privacy.  Should privacy be a concern for these companies?  Maybe this is exactly why Facebook has let this opportunity slide right by.

Advertisements
Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: