Tuesday, January 08, 2008

Online Advertising Trends Toward Social Media

Andrew Chen remarks on increasing CPMs for online advertising. Traffic and advertising is moving toward User Generated Content (UGC) sites like Facebook, MySpace and Flickr this year. Costs are low, and targeting is very granular. Are you advertising in social media? Comment to share your experiences.

The quick summary in terms of the pros and cons for CPMs increasing:

  • Pro: Technology and optimization is improving

  • Pro: More ad dollars are moving online

  • Con: The amount of available inventory is increasing

My quick take: the problem is not just that the amount of available inventory is increasing - more importantly, this inventory is concentrated in social media, UGC, and all that fun stuff.

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