OT: IBM sees radical shifts in advertising

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OT: IBM sees radical shifts in advertising

Postby yorktown » Sun Nov 11, 2007 4:44 am

I thought this was interesting as most social networks have their business models based on advertising.

IBM came out with a report on the future of advertising.

In it, they see advertisers changing their strategies from targeting mass-markets to advertising in niche markets. IBM predicts 30% of ad dollars spent on television will change to being spent online, to: AOL, Yahoo and Google.

The complete IBM study is here (PDF) while the executive summary is here

This is certainly good news to niche social network sites. A report worthy of carrying around to investor and VC meetings.

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Facebook comes in with their point of view

Postby yorktown » Fri Nov 16, 2007 6:17 am

Mark Zuckerberg, CEO of Facebook, has interjected his ideas in an article in Seattle PI.com

He sees 3 types of advertising. The bottom line is with traffic like a site the size of facebook, they can serious monitor metrics for consumer interest.

Social Networking may be starting to learn the most important word in online advertising.....CONVERSION.

Most online ads on Social Networking sites don\'t convert into customers. That is a common dilemma the industry faces. If that problem can be solved, the industry is \'home free.\' If it isn\'t, there will be a day of reckoning for this business.

Marc Lesnick
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