Thanks to a new product from Nielsen and Facebook, the Internet could be on the cusp of become a first-class citizen in the advertising world for good. But there’s just one problem: Do Facebook users want to be part of a Nielsen family?
A recent batch of product and funding announcements points to a real trend: the infrastructure and business ecosystem for social media advertising is developing rapidly. That’s good news for marketers – and even for Facebook competitors – as it is critical for growing the market beyond the $3 billion forecast for U.S. spending in 2011. Two critical areas are shaping up: social marketing management and advertising measurement,
Brian Morrissey is a little skeptical of Nielsen’s forthcoming online GRP. Gross rating points are a TV advertising artifact that is fairly simple and arguably inferior to the measurement you can get from online media that’s geared to unique visitors and actual actions. That’s an old debate, and growing online ad spending will depend on providing tools for advertisers and agencies to compare online and traditional media. Facebook has a hand in Nielsen’s new offering, but it’s not focused on social media measurement. Facebook is just sort of a clearinghouse for demographic info, and a way to keep user data anonymous. Of course, the more Facebook learns about advertising, the better it should get at it. I’m working on some analysis on the social media advertising ecosystem for my Weekly Update. Meanwhile, here’s a couple of reports on the topic.
One of the keys to monetizing NewNet technologies like real-time feeds and social media will be harnessing the massive amounts of data they create. In recent weeks, there have been a handful of announcements illustrating creative ways of using this data. But most of them have not shown clear revenue strategies.
Recent stories about social networking companies and third-party data suppliers highlight a key challenge currently facing social media: advertising measurement. Companies that best address this challenge by pairing the new medium with more traditional media buying will be the ones to get the advertising revenue.