Advertisers Face Hurdles on Social Networking Sites

Sunday, December 14th, 2008

No, really? Just a quickie:

Tide Facebook Nemo Portland Pampelmoose
You can ‘friend’ Tide on Facebook

As for P.& G, the company permits Facebook to talk about the results of only a single P.& G. promotion, presumably its most successful to date: for Crest Whitestrips. The promotion began in fall 2006, when P.& G. invited Facebook members in 20 college campus networks to become Crest Whitestrips “fans” on the product’s Facebook Page. Facebook said it was a great success, attracting 14,000 fans.

One could argue, however, that with the additional enticements that Crest provided — thousands of free movie screenings, as well as sponsored Def Jam concerts — a brand of hemorrhoid cream could have attracted a similar number of nominal “fans.”

Read the article here, unless you feel it’s ok to ‘friend’ a detergent, or Spraychel..

The Head of Digital at P&G doesn’t think it works either..

Facebook Apps: Brand Graveyards?

Monday, December 8th, 2008
Facebook Apps Nemo
Pic: Adweek

Over at Adweek, Brian Morrissey makes a very strong argument that Facebook advertiser applications are finding very few takers. His overview entitled Apps: The Newest Brand Graveyard, lists four brands with Facebook Apps that are struggling to find users – Fed Ex [1,500 users,] Ford [106 users,] Nike [3,400 users,] and Microsoft [8,500 users.]

For anyone who believes that marketing through social media will work for the brand and/or provide a revenue stream for Facebook this article is worth reading. Here’s an extract -

‘Brands, in general, have found Facebook unforgiving terrain for marketing. It’s well known, for instance, that banner ads perform poorly on the site. (A recent IDC report called advertising on social networks “stillborn.”) But the Facebook Platform, launched 18 months ago — which lets developers create social applications for users — was thought to offer the perfect opportunity to move beyond banners to provide “branded utility.” So far, however, Facebook apps from brands like Coca-Cola, Champion, Ford and Microsoft are as popular as desolate Second Life islands.’

Just last month I posted how P&G’s Head of Digital, Ted McConnell isn’t a believer.

P&G Digital Head Ted McConnell Smells the Coffee – Social Network Advertising Won’t Work

Tuesday, November 18th, 2008

Finally, an advertiser being honest about social media advertising. Ted McConnell general manager-interactive marketing and innovation at Procter & Gamble Co spoke recently at a forum on Digital Media where he came across as rather negative about social network platforms and advertising. He singled out the Facebook platform, saying “I really don’t want to buy any more banner ads on Facebook.”

Other key phrases of his that stand out –
Social networks may never find the ad dollars they’re hunting for because they don’t really have a right to them.
What in heaven’s name made you think you could monetize the real estate in which somebody is breaking up with their girlfriend?
I don’t think everything every consumer says to someone else and writes down is somehow monetizable by the media industry.
Fragmentation thwarts artificial scarcity.
Performance-based advertising will gain share over CPM

Ted McConnel P&G Nemo
Ted McConnell. [Pic Ad Age]

McConnell’s premise is that social network platforms won’t be able to collect ad dollars because they don’t really have a right to them, which I believe is entirely accurate. And his negativity about the platforms appears to hinge on the wrong-headed idea or a misunderstanding of the meaning of the term “social media” – he asked – “Who said this is media? Media is something you can buy and sell. Media contains inventory. Media contains blank spaces. Consumers weren’t trying to generate media. They were trying to talk to somebody. So it just seems a bit arrogant. … We hijack their own conversations, their own thoughts and feelings, and try to monetize it.”

McConnell’s ideas strike a chord with me as I have found myself on the contrarian side of the social media argument recently. I have argued on panels and in essays that technology did not transform the way we socialize –

When we wrongly consider technology as a ‘new’ medium that simply and efficiently transformed culture, business and society, we forget our own human ancestry. We leave out Nature. In our hearts we want to belong, to share; we fear dying alone and as we age we become thanatophobic – we fear dying. Individuality is an illusion. [By that I don't mean an individual's style, taste, fashion etc, things that set us apart aesthetically from others, I mean we are forever bound to being social animals.] Read the rest of these thoughts here.

We need to rethink the term “Social Media.”