Strategy: What Say You?
By Jay Deragon, TNNW Contributing Writer
The proliferation of new sites confuses the marketplace of users. Your Space is getting duplicative, aggravating, crowded and a time drain on your productivity. The craze by operators is aimed at generating traffic which in turn creates increased advertising revenue.
Advertising grab is the major motivating factor in the social networking space today. Just consider the recent developments:
MySpace recently announced full integration into the mobile market regardless of handset or carrier. The mobile market already has an abundance of social networking applications launching on numerous networks but few, if any, enable complete connectivity to any network thus again forcing users to jump from one application to another. The driving factor for these launches is grabbing ad space thus revenue.
A recently released U.S. mobile advertising forecast by The Kelsey Group indicates that the U.S. mobile ad market will grow from US$33.2 million to US$1.4 billion in 2012, a CAGR of 112 percent. The Kelsey summary concludes that the potential of mobile advertising is about change, though for years forecasters and pundits have touted the potential but U.S. market has failed to materialize.
The forecast breaks mobile into three distinct ad segments: ad-sponsored directory assistance, mobile Internet (search, browse, etc.) and multi-modal applications. The two largest contributors of revenues, says the report, will see a substantial increase in usage: For more information on the KelseyGroup, please visit this link.
Chasing Video Advertising opportunities
eMarketer CEO Geoff Ramsey. Next year, digital ad spending will increase 32%–amounting to nearly $28.8 billion, Ramsey said in his opening remarks at OMMA New York on Monday morning. The future? Branded and video advertising, said Ramsey, assuring that branding dollars are fast on their way to matching the budgets spent on search. "With video, you can do a heck of a lot better job of storytelling," he said.
OnLine Media writer Gavin O’Malley states "Now big business, Web videos are watched by 72% of Web users–or 135 million people–every month. Ad spending around them is set to hit $775 million this year, and $1.3 billion by next year. With YouTube in tow, Google is poised to lead the burgeoning video market, and grab the bulk of ad dollars flowing into the medium, according to Ramsey. "
What are the greatest challenges facing online marketers today? Audience fragmentation; ad clutter; consumers’ eroding trust in marketers; and something Ramsey likes to call "trend-itis"–or the propensity for marketers to blindly follow trends without implementing proper checks and balances.
As things stand, 76% of marketers say ad agencies don’t provide them with sufficient data on ROI. Most marketers, said Ramsey, express a "vague undercurrent of discontent with their agencies."
A Simple Solution
The end users of social networks, whether online or mobile, are the factors that drive traffic. The current market of social networks is stealing time from users, individuals and corporations alike. To create more traffic and user creativity it would seem that the shortest distance between two points, advertisers and their markets, is a straight line.
If we the users were given the opportunity to earn an income for our time, talent and contributions to social networks then we the users would become the focal point of market expansion. Corporation, individuals, groups etc. would then be able to justify their time, talent and contributions to social networks.
Instead of creating yet another social network the market would be smart to simply tap into the network as it is, the users.
What Say You?
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