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Social Networking Gets a Much-Needed Downgrade
By dave_pasternack | May 13, 2008
A blistering new report from EMarketer hammers a couple of much-needed nails into the coffin of social networks as ad media. The fact that advertising doesn’t work on social networks is obvious: users are too busy diddling around with some doo-dad to pay attention to marketing pitches. Here’s more bad news for social networking hype-meisters:
- Revenue projections fell 22.5 percent (from $1.6 to $1.4 billion) for all of $2.8. Why did EMarketer downgrade this medium this early in the year? Because expenditures for this junk are tanking badly!
- Growth figures have been cut in half (from 163 percent growth in 2007) to just 55 percent. This is more than a deceleration: it’s a downright crash.
- Myspace alone (a gaudy, obtrusive ad-laden nightmare) accounts for 55 percent of social network ad spend. And yet Fox Interactive’s revenue is DOWN 10 percent. This obviously means that whatever money its making is offset by huge costs.
Social networking is a dog as an ad medium. Expect to hear more about its doggyness as this fast-moving train wreck destroys the hopes of all the lunatics promoting it. This ridiculous waste of ad dollars must stop!
Topics: I'm Mad as Hell and I'm Not Clicking on It Anymore, Online Ad Industry Foolishness, Uncategorized |
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