Advertisers Love Social Networking, Apparently, So Where's The Money?

from the invisibility dept

There's a flurry of activity around social-networking sites as they try to figure out how to make some money, and it's matched by advertisers that don't want to miss out on the next big thing. But they're casting a cautious eye over the sites, with much of that concern put down to worries that their ads will be displayed alongside objectionable user-created content, or that they'll get caught up in the blame game surrounding the sites' supposed dangers to children. Some sites like MySpace are trying to figure out way to offer advertisers a "safer" experience, but it's worth wondering if their reticence isn't solely based on fears about the content, but rather also if the ad space is actually worthwhile. Despite their huge amounts of traffic, the ad rates social-networking sites charge are reported to be very low, perhaps an indication of the results they deliver. If they delivered high clickthroughs and conversion rates, would advertisers be so concerned? So as the bubble-esque hype surrounding these sites carries on, it remains murky just how they'll turn their massive traffic into massive revenues.

Reader Comments

Subscribe: RSS

View by: Time | Thread


  1. identicon
    kantankerus, 12 Jul 2006 @ 11:51am

    advertisers dont want

    a] intelligent consumers
    b] people with a life

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown for basic formatting. (HTML is not supported.)
  • Remember name/email/url (set a cookie)

Follow Techdirt
Techdirt Gear
Shop Now: Copying Is Not Theft
Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

Close

Email This

This feature is only available to registered users. Register or sign in to use it.