Don’t expect a high click-through rate on ads on social networks, says Chief Executive, Pinstorm as he interacts with 4Ps B&M
Do you feel that social networks are better for branding, particularly if we take ROI into account?
Social networks are not useful for ROI-based advertising and
relatively speaking, they are better for brand or awareness advertising. Unlike search, where people go to a site like Google or Yahoo! to click away and go somewhere else, social networks are immersive and users tend not to click on ads here. So don’t expect a high click-through rate on ads on social networks. Social networks can hence be better used for general demographically or behaviourally targeted brand messaging.
What pros and cons do you see for advertisers on social networks?
Social networks are a double-edged sword for advertisers. On the one hand, they offer large numbers of prime young audiences with high purchasing power who spend a lot of time online. While typical viewership of a TV programme might be in the 10-15 minute range, the successful networks are used for 3 to 5 times as much. And the audience is more urban, more influential and more amenable to new brand messaging. On the other hand, the very popularity of social networks can be the problem – people are going there not to see ads or click on them – or even to get entertained, like they go to a TV channel. They are going there to connect with friends, acquaintances, lovers and the like. So, they’re not exactly in a mood to welcome brand messaging and you run the risk of somewhat becoming wallpaper on Orkut or Facebook. But then again, most advertising on television has a similar fate.
What kind of brand is benefited the most on social networks?
Social networks will be happy hunting grounds for brands which have a core focus around the urban young between 18 and 35 years, with high disposable incomes, and who are trend-setters by nature. In addition there are also vertically specialised social networks like LinkedIn, Xing and such. We use these for B2B advertising, where advertisers like large consultancies, IT/ITES companies, et al can be run very well.
Do you think the only factor attracting online advertising in this recessionary time is the cost?
Well in these recessionary times the choice that marketers are making is between brand awareness and response generation advertising. And the former is losing ground to the latter. So the big gainer is actually response - generation advertising online – publishers like Google and others who offer pay-per-click or pay-for-result solutions. The media losing business across the board is awareness media. I can only imagine that social networks are losing out as much as television channels are. After this down phase is over, I predict a strong growth in online awareness ad options, including social networks.
What are the factors that advertisers should keep in mind while deciding on social network?
Most importantly, who are you talking to? Depending on which social networks you choose, you can target by age, sex, location – or even by interest, keyword or forum. So you have both demographic and behavioural axes to make a media pick on. Use both. After this, realise that people aren’t coming there to click on your ads. Do not harbour hopes of high click through rates. Further, if you want to engage audiences, you have to try harder than just doing a flat banner ad. Try interactivity, humour, fun – remember you have to make it more compelling content than what your friends are saying to you online. And last, try, try and try again.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
Do you feel that social networks are better for branding, particularly if we take ROI into account?
Social networks are not useful for ROI-based advertising and
relatively speaking, they are better for brand or awareness advertising. Unlike search, where people go to a site like Google or Yahoo! to click away and go somewhere else, social networks are immersive and users tend not to click on ads here. So don’t expect a high click-through rate on ads on social networks. Social networks can hence be better used for general demographically or behaviourally targeted brand messaging.What pros and cons do you see for advertisers on social networks?
Social networks are a double-edged sword for advertisers. On the one hand, they offer large numbers of prime young audiences with high purchasing power who spend a lot of time online. While typical viewership of a TV programme might be in the 10-15 minute range, the successful networks are used for 3 to 5 times as much. And the audience is more urban, more influential and more amenable to new brand messaging. On the other hand, the very popularity of social networks can be the problem – people are going there not to see ads or click on them – or even to get entertained, like they go to a TV channel. They are going there to connect with friends, acquaintances, lovers and the like. So, they’re not exactly in a mood to welcome brand messaging and you run the risk of somewhat becoming wallpaper on Orkut or Facebook. But then again, most advertising on television has a similar fate.
What kind of brand is benefited the most on social networks?
Social networks will be happy hunting grounds for brands which have a core focus around the urban young between 18 and 35 years, with high disposable incomes, and who are trend-setters by nature. In addition there are also vertically specialised social networks like LinkedIn, Xing and such. We use these for B2B advertising, where advertisers like large consultancies, IT/ITES companies, et al can be run very well.
Do you think the only factor attracting online advertising in this recessionary time is the cost?
Well in these recessionary times the choice that marketers are making is between brand awareness and response generation advertising. And the former is losing ground to the latter. So the big gainer is actually response - generation advertising online – publishers like Google and others who offer pay-per-click or pay-for-result solutions. The media losing business across the board is awareness media. I can only imagine that social networks are losing out as much as television channels are. After this down phase is over, I predict a strong growth in online awareness ad options, including social networks.
What are the factors that advertisers should keep in mind while deciding on social network?
Most importantly, who are you talking to? Depending on which social networks you choose, you can target by age, sex, location – or even by interest, keyword or forum. So you have both demographic and behavioural axes to make a media pick on. Use both. After this, realise that people aren’t coming there to click on your ads. Do not harbour hopes of high click through rates. Further, if you want to engage audiences, you have to try harder than just doing a flat banner ad. Try interactivity, humour, fun – remember you have to make it more compelling content than what your friends are saying to you online. And last, try, try and try again.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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