Next to search engine marketing, advertising on social network sites like Facebook and MySpace is the most popular online marketing tool. There's a change in the dynamics of the marketing mix for business. Marketers are using more online marketing tools like search, social networks, blogs, podcasts and RSS and less traditional marketing tactics for businesses. In fact, social network marketing is fast on the rise and is currently the second most popular online marketing tactic. Whether you are marketing to other businesses or marketing to consumers, social networks must be in your marketing mix.
US online ad spending is rising. Ad spending for MySpace is expected to grow from 525 million in 2007 to 810 million in 2008. Facebook ad spending is expected to grow from 125 million to 215 million in 2008. Spending increases in other social networks like MSN, Yahoo and other niche or marketer sponsored sites is also expected to grow.(eMarketer – Aug 13, 2007).
Marketing Formats on Social Networks
There are several ways to advertise or market on these sites:
* Banner Ads & Display Ads: They are back and they are very popular. Banner ads can be located across the top or bottom of the site, or they can be located on the side in smaller sizes.
* Creating Groups or Networks: Many companies create a group or network that people can join. It’s not about blatant advertising of their products or services, but about demonstrating and sharing their knowledge in their area of business (i.e. a writing magazine has a fantasy writing network or a landscaping company has a gardening network). It’s a form of viral marketing – especially if you get a lot of people joining the group.
* Creating Profiles: Some companies go so far as to create a profile on Facebook or MySpace. Again, this is not necessarily about advertising products or services. Most social network users probably wouldn’t connect up with a profile that is selling something. Profiles are similar to blogs in that they allow a business to share their knowledge of a particular subject and in some cases bring a real person to the forefront to give the business a more personal appeal.
Which Social Network Should You Use?
# Banner Ads
Although MySpace is the most visited social network, Facebook gets more attention from marketers and is one of the fastest growing social networks. Should you choose one of these or another site altogether? To increase awareness of your brand, try to spread your marketing funds over several social networks. Aim for the ones you think your target audience is spending a lot of time on. Find out which ones your competition is marketing on.
Groups and Profiles
If you are creating groups or profiles, be prepared to spend time updating these on a regular basis. In this case, it may be smarter to select one or two networks and focus on bringing value to the people who connect with you.
Measuring the Success of Social Network Advertising
Measuring banner ads isn’t about click through rates anymore but about post impression analysis. This means that a person doesn’t have to click the ad to go to the business’s website to have that ad considered successful. It’s about conversions based on viewing the ad and then later going to the website (within a specified time period).
As for creating groups or networks, marketers are still trying to understand their effectiveness and how to truly measure it.
In order for a marketing tactic to be considered viable and successful, there must be a way to measure their effectiveness (conversion rates). So think carefully about what social networks to advertise or join and figure out how you are going to track their effectiveness. If you are not tracking, then you are not marketing. To be successful in your marketing efforts you need to have social network marketing in your basket.
