This is actually a much better thought out post than the one I just did on banner ads. It gets to the point that I tried to make about ads on all social sites not just FB/Twitter but blogs as well. Monetizing blogs using banner ads is not productive. Services like what Solariat seems to offer are needed to filter through the noise and provide relevant content.
Speaking of Google, one problem I have with the Google Ad Network is that is more akin to banner ads than to their search based ads. Ad networks are too dumb at how they target the desired demographic. The ad content doesn’t seem to correlate to site content. I used a $100 credit from Google to run an ad campaign for my blog and ended up getting referrals from day care sites. I’m not sure that my targeted audience was being reached. Google ads are targeted based on the logged in Google account but when I see the referral from abcdaycare.com I’m not sure if it was worth my $5.00.
Originally posted on Gigaom:
Solariat Founder and CEO Jeffrey Davitz has a message for anyone trying to leverage social network data to make money: “The fundamental problem with social is yes, it’s big data, but it’s mostly big, sucky data.”
What he means, he explained during a recent interview, is that life isn’t too easy for social platforms such as Twitter and Facebook (s fb), where deciphering what users actually want means poring through a lot of extraneous information. Google (s goog) is able to earn so much advertising revenue because its search users are expressly seeking information on a specific topic. They’re relatively likely to click on a sponsored link if it will answer their questions or connect them with the products they’re seeking.
The challenge on those other platforms — for both the platform providers trying to create targeted advertising models, and brands trying to engage with consumers on the platforms — is getting messages in front of users in a manner that’s “congruent” with what they’re already doing. Take Facebook and its advertising revenue woes, for example. If users are generally on Facebook with the intention of interacting with their peers, they might not notice or care about the display ads lining the page, no matter how much data they share via profiles, posts, Likes and other interactions with the platform.