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Facebook, MySpace corner the social market on display advertising

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Sep 2, 2009 

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Edward Barrera  |

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Facebook, MySpace corner the social market on display advertising

ADOTAS — Social networking sites accounted for more than 20 percent of all display ads viewed online, with MySpace and Facebook combining to deliver more than 80 percent of ads among sites in the social networking category.

According to comScore, AT&T Inc, Experian Interactive and IAC/Interactive Corp’s Ask Network were the top three advertisers on social networking sites in July.

“Over the past few years, social networking has become one of the most popular online activities, accounting for a significant portion of the time Internet users spend online and the pages they consume,” according to Jeff Hackett, comScore senior vice president. “Social networking sites now account for one out of every five ads people view online. Because the top social media sites can deliver high reach and frequency against target segments at a low cost, it appears that some advertisers are eager to use social networking sites as a new advertising delivery vehicle.”

Much like TV, it’s about volume not direct response actions. Placing ads on social networking sites is much cheaper than ads elsewhere, including portals, and brands can buy massive ad impressions. For major brands, it’s a comfortable place to park the few digital dollars they spend.

“Social media is becoming an increasingly attractive vehicle for major advertisers seeking to optimize campaign reach and frequency and smaller advertisers desiring to reach a highly targeted audience,” added Hackett. “As social networking sites innovate on their existing ad offerings, the category should continue to grow in ad volume, while CPMs could also increase if the sites can demonstrate a high campaign ROI.”

Tags: advertising, behavioral-targeting, comScore, display, facebook, internet-advertising, MySpace, online-advertising and targeting

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