Happy Prescriptions “Thought it’d lead us..”

Getting it right, getting exposed. A comment on the Girl Talk post, left by a user named ‘Natron’ led me to a web site for Happy Prescriptions, no doubt the web site for said ‘Natron’ who it turns out is a Portland musician. Another click of a hand [you have to visit the site to get that] led me to Happy Prescriptions MySpace where I found the video above. There’s also a free MP3 ep there. Circle complete.

This is serious news when it comes to business networking and social media, I see a serious win-win here for both parties. There has been some debate recently about Facebook and how seriously it can be taken when it comes to businesses using the Facebook network to extend their social media ambitions as well as advertise across it. I would argue that the LinkedIn/NYT partnership steps up the ante for both Facebook and MySpace; the NYT, one of the world’s great media institutions that has seriously embraced the internet to further its business, may be on a path to shaking off its “Grey Lady” image and LinkedIn, which, although having only 25 million registered users making it small by social network standards, is by far the doyen of social sites for serious business users. We’ll see how this one unfolds.

Kudos, once again to Marshall Kirkpatrick for breaking the story.

In an article in the Wall Street Journal today [subscription req.] a report says that YouTube will will fall short of revenue expectations. The twist to this chatter is that Google has found that 80% to 90% of video watchers hate to watch pre-roll advertising and they leave the video the minute they see any hint of a pre-roll. The story goes that Google intends to ignore its own research and go ahead with pre-roll anyway.

And the reason that most pages on YouTube are ad free? Because Google is fearful of showing that it is profiting from copyright infringement. They already in the middle of a copyright infringement lawsuit filed by Viacom. That apparently leaves Google with only 4% of the videos being legally a-ok to advertise around as they have been approved by the copyright owners.

Bottom line for Google and the lawsuit they face, is that it is very unlikely they will receive a ruling in their favor to make money from copyright-violating content. It also will be a barrier to entry for anyone trying to launch a social media advertising program around these big content sites. Even Rupert Murdoch’s News Corporation doesn’t own the copyright to hundreds of thousands of songs on its MySpace site.

In the many years that I have had a MySpace page I have never once clicked through on any of the ads pushed to me. Here’s an example in the clip I took from the home page above. I never read Spin Magazine and I can’t stand Coldplay. Even the tag line from Chris Martin - “Our album will probably save the world” fails to entice me as the comment is so shallow. The good news though is that the digital issue of Spin is free. Now they’re thinking.

Social Media is no longer viewed as just a hobby or a passing fad. According to Adweek, a handful of advertising and PR agencies are seeing the potential of web-based client promotion and have recently launched Social Media divisions in addition to their more traditional offerings.

As more advertising dollars continue to make their way to the internet, Brain Sells notes that “more than just ad dollars following a trend or digital hype, the growth is being driven due to real changes in behavior: (the) rising number of people online, the introduction of cheap laptops and the growing popularity of TV shows on the Internet.”

Furthermore, ChasNote shows us the migration of U.S. ad dollars in which the amount of money spent online in 2007 swelled to $21 billion, an increase of almost 26% from the previous year:

The social media teams at various agencies are becoming savvy enough to realize that buying up ad space on large networking sites like Myspace and Facebook is not necessarily the answer. Michael Nathanson, an analyst at Sanford C. Bernstein & Company states that “the jury’s still out on MySpace’s ability to monetize” and “we don’t have much conviction in the long-term ability to grow this business based on what we’ve seen lately.”

Instead, the future is pointing towards more focused ad campaigns targeted at niche blogs that have highly faithful followings. As Dave Allen, Director of Insights & Digital Media at Nemo Design says, “Companies should be advertising directly to those niche groups and networks that include people who would like to hear from their brand. (On other social media sites) the brands need to wait until they are invited in. A mass, scatter-shot approach to the large social networks will only fail.”

The bottom line: there is no quick way to propel a company to the top through social networking; it takes time and the earning of users’ trust. The competition is constantly growing and social media users are becoming increasingly savvy. Patrick Garrett, Outrider’s U.S. managing director is right when he proclaims that “social media is a long-term investment.”

A shadowy social network group.

Facebook is getting an assist from Visa Inc.’s marketing machine in its struggle to lure more advertisers. To date, Facebook has not had as much success as was expected in garnering revenues from advertising. The plan with Visa appears to be aimed at small businesses who are using Facebook to look for new customers.

Michael Liedtke reports:
Visa’s service is designed to provide small-business owners with tools and tips on attracting new customers, trimming costs and other ways to make more money. Businesses that belong to the Visa network on Facebook also will be able to communicate with each other to share ideas or even negotiate deals. Internet search leader Google Inc. is providing some of the features on Visa’s business network, including maps, calendars, word processing and a new template for creating expense sheets and business cards. And The Wall Street Journal and Entrepreneur magazine will contribute articles addressing questions posed by businesses that belong to Visa’s Facebook network.

Facebook’s struggle to produce revenue from its site sounds similar to the problems that MySpace has been having. Facebook has 80 million users who play games, share photos, rate music and track their friends’ activities - the idea that they can be bothered to click through on an advertisement that is not relevant to them, and one that just randomly appears on their home page or profile, is a marketing stretch.

As Michael Liedtke writes:
…while the array of applications have helped make Facebook even more popular, few programs are producing revenue for the site, and Facebook still hasn’t proven that its social playground is an effective advertising forum. Finding the right advertising approach also has been a challenge for other social hangouts like News Corp.’s MySpace. Even Google, which runs the Internet’s most lucrative ad system, has had trouble marketing on social networks.

Advertisers and marketers are labouring under the assumption that the information that Facebook has gathered about its users makes it easy to target different groups of them. This is a dubious notion at best. They are a moving target.

As Liedtke points out: …..some advertisers fret that Facebook’s audience will resent commercials amid all the site’s frivolity. Others are leery about their brands showing up on Web pages featuring racy or unsavory content.

Stay tuned.