Nielsen released new data highlighting the importance of business involvement in social networking and blogging websites. And it appears businesses understand that importance. The amount of ad spend on these sites increased 119 percent from $49
million to $108 million. Why is this? Nielsen also reported that consumer time spent on social networking and blogging sites consisted of 17 percent of all time spent on the Internet last month – triple the time from one year ago. Businesses understand they need to advertise where their customers are active.
Facebook is one social networking site that many businesses choose to spend their ad dollars making Facebook the number one social networking site advertised on by 10 of 13 industries. MySpace ruled the other three industries (entertainment, financial services, and hardware and electronics).
Targeted advertising, custom options and different types of ad spend make social networking appealing to businesses. Facebook advertising allows businesses to reach its 300 million users by targeting by demographics, location, education and more. Advertisers can choose between pay-per-click (PPC) or cost-per-impression (CPM), and they can manage ads any time of the day by visiting the Ad Manager website through Facebook. And for those who are unfamiliar with creating ads for this platform, Facebook has an Advertiser Guide to assist with designing ads.
MySpace advertising also has targeted advertising for demographics, location, education and more. According to MySpace, you can reach more than 70 million users through its advertising, and can choose between PPC or CPM. Advertisers can upload, create, and manage ads all on its MyAds homepage.
But you also must know where your customers are active. Looking at Facebook's 300 million users is impressive compared to MySpace's 70 million - however your customers may be using one network more than the other. Nielsen Claritas recently released a study on Facebook, MySpace and LinkedIn users. The results showed that affluent and urban consumers use social networking - with the top third lifestyle segments related to affluence more likely to use Facebook, and the bottom third related to affluence more likely to use MySpace.
While this increase of 119 percent is impressive, it's important to keep in mind that this medium is still relatively new. Don't forget the many other areas of advertising available.
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