Comments on: Google: Social networking pays poor advertising dividends

Social networks turn out to be poor indicators of the kinds of ads people want to click on. This shouldn't be surprising. Here's where to go with that information.

[seanupton]

So effective social networking isn't ad-driven, it's VRM? There's still money in that sort of world because there is still value in connecting people with commerce through effective messages, but I'm not sure exactly how this ends up being delivered or being sold?

[andrewpmk]

It's quite obvious. Social media networks are currently mostly used by young people - in their teens and early twenties. These people have little spending money, and thus there is little demand for advertising.

This could change in the future if older people start signing up to sites like Facebook, or when the young people who currently use these sites get older.

[stevedrobinson]

I disagree. Social networks have one distinct advantage over most online advertising: they know their audience much better. Social networks know who you are, your sex, age, what you like to do, and what types of people you associate with. They are a targeted marketer's dream. I currently manage campaigns advertising on Facebook, Google, and Yahoo, and the degree with which I can target a message on Facebook makes it an extremely appealing medium for the right advertising.