Is Advertising on Social Networks Profitable?
Despite the ability to target your audience, the choice between paying by click-through or impressions, and daily reporting, advertising on Facebook has yet to show significant sales.
In this article, Steve Ennen, CIO and President of Social Strategy1, discusses the paradoxes of social networks and whether it’s a worthy investment in targeting your audience or just part of the social media hype.
“These networks are paradoxes,” says Wharton marketing lecturer and news media expert Steve Ennen. “Facebook reaches 500 million people, but that doesn’t mean it will reach people who are interested in buying what you are selling.”
A social network’s strength, he believes, is in its ability to create clubs and groups around areas of interest, not to deliver revenues from traditional broadcast-like advertising. “Groups generate interest,” says Ennen. “But that’s not the same as targeting someone who likes your product.”
Read the entire article here on the American Express Forum: Advertising On Social Networks