An emarketing Blog!

And the winner is…ads! Oh…wait..omg…sorry…it’s banner ads

I have found the new easy way to get rich.

 And I’m sure many of your ears have just perked up.

 The answer is….

 Social Media & Youtube

 Of course, of course, many of you may consider this old news (like we haven’t heard enough about Beiber Fevers these days) ….but how many of you knew that by allowing companies to post banner/pay per click ads on your page you can earn up to $100 000 a year??

My favourite video blogger of all times, Natalie aka CommunityChannel, is a prime example. A normal, 20 something year old uni student from Sydney, has not only found sudden fame, but also a fortune just by posting skits about her life on Youtube. But then again, not many possess the charisma, cleverness, and not to mention courage, in making videos such as hers.

 Examples of her clever skits are seen here:

 Her $100 000 revenue stems from good old banner ads on her pages, in which she takes half of the advertising revenue.

 Social networking sites have been a very popular medium to place banner/pay per click ads. The price of placing ads on social networking sites is much less than web portals such as Google or Yahoo. The different links and pages within a social networking site allows marketers to purchase more ad spaces at a bulked price .

 As with all banner/pay per click ads placed on the web, a reasonable amount of traffic needs to flow on a particular website in order to make any real money – and that’s where social sites such as Youtube, Facebook and even blogs come in handy.    

 So why are social networking sites the most popular choice?

 Well, where do people spend the most time socialising and procrastinating? Where is the first point of contact when people need communicate with friends or even to just vent about their frustration over St.Kilda’s grand final loss? (or extreme happiness for you Collingwood fans). These social networking sites have such high traffic and page site views, that it’s a no brainier companies find value in placing their advertisements through these sites.  

 Facebook commonly displays 50 billion ads a month and is the most popular choice for ad placements, currently sitting at number 3 for most trafficked site.

 It never ceases to amaze at how dynamic it can be. Within an hour of watching that cringing moment from Australia’s next top model, a Facebook page was already made by a fan with ads on the side promoting all things beauty and cosmetic related. 

Related ad placements for facebook fan pages 

Not only does social networking sites have the ability to tailor ads to related topics, it can also track the number of page views and subscriptions a profile has, thus allowing companies to see the most popular profile and work out strategies to approach individuals for ad placements and endorsements.

 Advertisers are allocating more and more marketing spending to these online mediums as a way to engage and connect with target audiences. Research also found that 76% of people don’t mind seeing ads when they are logged in to a social media site.

Yes, there is much success in advertising through these mediums, but as with all types of ads, companies have to be mindful in not being too intrusive and ‘in your face’ with their ads.

Article Sources:

Moses, A, 2010, ‘Our Natalie raking in $100,000 a year from YouTube’, Sydney Morning Herald, August 20
http://www.smh.com.au/digital-life/digital-life-news/our-natalie-raking-in-100000-a-year-from-youtube-20100820-133be.html  

Oresekovic, A, 2009, ‘Social networking sites grab big slice of Web ads’ Reauters, Sep 1
http://www.reuters.com/article/idUSTRE5805QX20090901

 Ostrow, A, 2010, ‘Facebook Now Serving More Than 50 Billion Banner Ads Per Month,’ Mashable Business
http://mashable.com/2010/05/12/facebook-banner-ads/

McCollum, J, 2008, ‘Social Network Advertising: Annoying or Effective?,’ October 29
http://www.marketingpilgrim.com/2008/10/social-network-advertising-annoying-effective.html

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One response

  1. Ads have come a long way, haven’t they? Newspapers, pamphlets, T.V and radio jingles, to marketing emails and website banners.

    I think the effectiveness of online ads depends on their aggressiveness. Be aggressive enough to be noticed by your target audience, but make sure not to intrude into what your target audience is trying to do.

    Flashing a huge Volvo ad while I am trying to read an article on ninemsn.com.au annoys me more than creating any interest about the new Volvo model. Then you have to wait for the ad to do its thing and close by its own, (cause you can’t find the close button).

    Even Youtube forces you to watch advertisement videos these days before starting some videos.

    Forcing users to be exposed to advertisements repels them more than creating an interest in them I think.

    Subtle online advertising is the way to go, take Facebook for example. The ads are there, and if you are interested you can click and be directed towards that business, else you can carry on with your social networking.

    I think putting viral ad campaigns is a good and innovative thing to do, yes it hammers down on some people’s netiquettes but hey, its just being creative.

    Look at the normal ads, on T.V or newspapers, do you think that guy would really grow wings after drinking Redbull? Its all about the recipients to use common sense to distinguish between the virtual realm and the real world.

    October 12, 2010 at 3:40 pm

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