MediaPost Publications - Goldstein At IAB: Marketers Can't Ignore Social Media - 06/03/2008: "Goldstein At IAB: Marketers Can't Ignore Social Media
by Mark Walsh, Tuesday, Jun 3, 2008 7:45 AM ET
Seth GoldsteinSocial networking sites represent a new mass medium for brand advertising, but marketers must shape their campaigns to fit the contours of users' online conversation to reap any gains.
Accomplishing that goal isn't necessarily easy, acknowledged entrepreneur Seth Goldstein in a keynote address at the Interactive Advertising Bureau conference Monday on user generated content and social media.
The co-founder and CEO of Social Media Networks pointed out that even Google has struggled with how to make money through advertising on MySpace and other social sites. But with so many people spending so much time on social networks, advertisers can't simply ignore the critical mass of consumers they bring together.
'Social media is killing advertising,' Goldstein said. 'A few years ago people started to become more interested in each other [online] and less interested in advertising.' With response rates for standard banner ads under 1% and search not geared to brand advertising, social media is the next frontier for major marketers to attack.
How do they do that? By asking consumers questions about their likes and dislikes to figure out how best to engage them"