Social networking sites are no longer for teenagers only. These days, there are millions of adults that utilize these sites. That’s the reason why, regardless of what product a company is selling, advertising in social media can bring in huge profits for that business.
Gone are the days when advertisers are limited to television, radio, or print advertising. The fact is social media has changed the way a lot of people buy. Therefore, for businesses wanting to reach out to these social consumers, advertising in social media is the way to go.
The audience in social media is massive. Also, like every other medium of advertising, there are a number of challenges to overcome in social media advertising as well. However, ad agencies can now breathe easier with the recent changes in this ever-improving sector of digital advertising. Here are four reasons why advertising in social media has become more potent:
Advertisers have more tools to measure results. Measuring the results of advertising efforts is becoming easier and easier with new social media analytics launching every day. One example is Facebook Insights, which provides Facebook app developers and page administrators with metrics on the performance of their pages and apps. Furthermore, advertisers on Facebook are now capable of targeting users more precisely using the data brought about by Facebook’s integration with media sites like Hulu and Spotify.
Content synergizes with advertising. Facebook and Twitter can now turn user-generated content into ads. Facebook has the Sponsored Stories unit and Twitter has the Sponsored Tweets. User content and activities are now blended with messages from advertisers.
Advertising clutter is becoming less of a problem. As social networking sites are being filled up with promotional content, it’s getting more difficult for brands to fight through the clutter and get noticed. The good news is a lot of social networking sites are devising solutions to solve this problem. Facebook, for example, has Graph Rank and EdgeRank. These two algorithms organize the tremendous amount of content and activity generated by Facebook users, pages and apps, and then the algorithms decide what information to show whom.
It’s not always about Facebook. Indeed, Facebook does take the majority of social media ad spending. Nevertheless, there are other social networking services that are rising. The Pivot Conference conducted a survey which revealed that 16 percent of survey respondents had ad campaigns with Foursquare – and 26 percent were planning to do so in the near future. Also, eMarketer projects that LinkedIn’s advertising revenue will increase to $250 million in 2013 from $79 million in 2010.