Skip to main content

Advertisers Flock to Social Networking Sites

Business Week reports that social networking sites are attracting a rising number of major advertisers. Most of them come from the entertainment sector, although consumer products companies are active.

Target, NBC, and Procter & Gamble have run ad campaigns on MySpace. Interscope Geffen A&M Records has launched new albums from Beck and other artists there. Social networking sites have some natural advantages for advertisers. Even if the environment can be a bit wild, it creates an opportunity to develop powerful affinity groups and to collect a mother lode of demographic data about its members.

That can be used to create carefully targeted promotions that go way beyond the common text and display ads found on the Web. "It's a challenging environment to get your message across, because there is a lot going on, like in a teenager's bedroom," says Troy Young, executive vice-president of Organic. "But there's an upside, because people reveal a lot about themselves when they use social networking sites. That can allow you to target messages in pretty sophisticated ways."

Procter & Gamble used MySpace to launch 'Secret Sparkle,' a deodorant for 16-to-24 year old girls and women. It linked the product to the home pages of musicians that used MySpace and appealed to the same demographic. When users listened to new songs by The Donnas and Bonnie McKey, they were exposed to ads for Secret Sparkle and offered a chance to participate in a Secret Sparkle sweepstakes.

Popular posts from this blog

How Online Video Exceeded Pay-TV Revenue

The global streaming industry has spent the better part of a decade chasing subscriber counts as the primary metric of success. That era is now formally over. New market data from Omdia confirms that the industry has crossed a decisive threshold; one that shifts the competitive playing field from growth-at-all-costs to monetization discipline. For senior executives navigating media, advertising, and technology strategy, the implications extend well beyond entertainment. A Historic Revenue Crossover Online video revenue increased 13.5 percent to $176 billion in 2025, while pay-TV revenue declined 4 percent to $170 billion; marking the first time in the industry's history that streaming has surpassed legacy pay-TV in revenue terms. This is not a rounding error or a statistical artifact; it represents the culmination of more than a decade of structural disruption to the traditional broadcast and cable TV model. Global subscriptions to online video services reached 2.24 billion by the ...