Social Network Advertising

by Joe Whyte

Since the emergence of online networking back when Classmates.com was created (1995) there have been a growing number of people rushing to join social networks. Whether on highly populated sites or smaller niche sites, online consumers are moving towards establishing connections in some shape or form. This recent trend has brought millions of advertising dollars to the networks that bring these people together. Let’s look at how much is being spent on today’s fastest growing online trend and why.

As an avid Internet user who has been online way back when Altavista and AOL were the major players, I can tell you that there has always been a sense of connection for people online. I remember one of the things I loved to do when AOL first came out was chat. I would go into chat rooms all the time, and it was new and it was fun. Although the need for human interaction online has always been there, however, the realization of that need did not take place until 1995, with the launch of Classmates.com. Classmates.com did not provide the type of social networking that you and I do today but it did provide a way for classmates to reconnect, email and chat with each other. The evolution of online social networking has reached its realization with sites like Facebook, which is a much more in depth version of Classmates.com and even sites like MySpace.

Why do people flock to social networking sites? There are many answers to this questions. Here are a few:
1. The lack of time for busy people. This allows them to network on there free time.
2. The lack of face to face networking lowers ambitions and allows people to be more open.
3. Being able to share with people and learn from each other in a fast paced environment.
4. The culmination of social networks into sites that are user generated provides an entirely new way to find content.

This last reason is my favorite. Sites like StumbleUpon.com, del.icio.us, newsvine.com and digg.com provide us with some very unique content which, most likely, we would never find using Google.

These reasons have brought the need for connecting online directly to the end user/consumer. The fact that about 2/3 of the United States population uses social networks makes it clear why there is so much money being spent on social network advertising. Below is a graph from eMarketer, showing the spending on social network advertising.

Los Angeles Blogs Net

Now you can reach the over 100,000 people per week who read the members of the Los Angeles blogads "hive" of blogs. From Hollywood to Palos Verdes, USC fans and media watchers, the members of the LA Blogads Hive have the blogs that readers read.

The LA Blogads Hive is maintained by Jeff Lewis. For additional information or to apply for inclusion in the Hive, please email Jeff at Jeff@JeffLewisLaw.com.

Marketing and Advertising Blog Network

Marketing.FM has announced a new network of marketing and advertising blogs syndicated under one RSS feed called the Marketing and Advertising Blog Network. The initial group of blogs has over 50,000 subscribers and cover marketing, media, advertising agencies, PR, branding, television, radio, internet, new media, interactive advertising, and influential discussion. Online Marketing Blog is happy to be included with this project.

Current blog network members include:

Adrants
Advertising for Peanuts
Duct Tape Marketing
Entrepreneur`s Journey
Logic+Emotion
Marketing Headhunter.com
Marketing Pilgrim
Marketing.fm
MarketingVOX - The Voice of Online Marketing
Micro Persuasion
Online Marketing Blog
ProHipHop - Hip Hop Marketing
Small Business Branding
WonderBranding: Marketing to Women

Familar names (at least to me) from this list include: Steve Hall, John Jantsch, Andy Beal, Tig Tillinghast and Steve Rubel. You can subscribe to the combined RSS feed which is hosted by FeedBurner’s new network feature.

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Content websites typically earn money through one of four ways:
* Commissions / Affiliate links;
* Advertising networks;
* Selling your own ads;
* Paid content;
* Sponsorships/Grants;
* Partner programs;
* Links exchanging;
Once you have ads on your site, you will want to compute the eCPM (effective cost per thousand impressions) of revenue that each ad type is earning for you. You calculate eCPM by taking the total amount generated by an ad (or ad type), diving it by the number of pages on which that ad (or ad type) appears, then multiplying by 1,000. Let eCPM data help you decide which advertising type, layout and position work best for you.

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Most news websites earn the bulk of their money through advertising. But you don't need a sales staff to attract advertisers to your site. Ad networks can handle the sale and display of ads on your site. All you need do is drop a few lines of code into your Web pages where you want the ads to appear.

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