Social Media and Advertising

Friday, October 15, 2010

As social media like Facebook and Twitter grow, banner ads are becoming less common.

Banner ads are usually rectangular and placed above, below, or on the either side of a Website.

Even though these ads may be annoying to the average consumer, a good chunk of money is spent on them each year. Last year, $23 billion was spent on Internet advertising with one-third of that being spent on advertising involving banner ads.

Twitter and Facebook are affecting banner ads quite a bit because from my personal experience I haven't seen many banner ads on those forms of social media.

One thing that social media has been a helping hand with is the ability to customize ads based on the user's interaction or interests.

Have you ever noticed how the ads, usually on Facebook, involve your interests?

Google's managing director for media and platforms for the Americans thinks 75 percent of ads will be "socially enabled" by the 2015.

That means that the new advertising formats would allow for "on-the-fly" customization while the user currently interacts with the site.

I find this to be interesting because now social media isn't simply just for personal use. It's becoming a tool for companies as well.

Even though banner ads aren't doing so well right now there will be a new generation that evolves from that failure.

You can go to Dorian Benkoil's blog, "As Social Media Grows, What Will Become of the Plain Old Banner Ad?," for more information.


Alejandro Caballero October 18, 2010 at 8:21 PM  

Have you heard of Google's success on mobile advertising?

Recently, Google announced that the it is making about $1 billion in annual revenue thanks in large to its mobile advertising and its investments on Android phones.
I would guess that marketing agencies will start making their way into mobile adverstising and pay less attention to banner ads after seeing Goggle's success.

Here's a report from Mashable if you want to read more about it:

taramaurer October 19, 2010 at 8:16 AM  

I'm happy to hear that "socially enabled" ads are on the rise. I have noticed that I never click on ads besides the ones that appear on Facebook, and it's for the reason that you said: they involve my interests.

This is not only influential for consumers, but for companies as well. Being able to connect to the intended audience is key for companies, and the use of customized ads does just that.

I enjoyed your article. It's always interesting to track changes. Thanks!

Angela Niesz October 19, 2010 at 9:04 AM  

No, I haven't heard about Google's success on mobile advertising. Thanks for informing me.

Tara, I'm glad you enjoyed my article. I do find it kind of strange how companies can target ads to a user they've never met based upon what kinds of sites and links they click on.

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