Social Media in 2005

I recently read an article that discussed how young adults interacted in the era when social media was on the rise. This article was written 5 1/2 years ago and mainly focuses on how the 'at-the-time powerhouse,' Myspace, was experimenting with online advertising.

But to understand this time period, we need to take a step back and really think about what is going on in 2005. CD's were popular, everyone was on Myspace, nobody was on Facebook, and Twitter would not be launched until a few months after this article was published. The article discusses one-hit wonders like the Baha Men, who sang "Who Let the Dogs Out." The next possible one-hit wonder brought up? Facebook! At the time, Mark Zuckerburg was 21 years old and the site wasn't turning a profit. Little did everyone know, Facebook would become the absolute beast it is today!

Advertising on these sites was an experiment due to the fact that people didn't know how users would react to ads. People tried advertising on social networks strictly because they had the potential to reach teens through virtual word of mouth for a relatively small investment. Teens don't buy things because an ad tells them to, they buy because their friends tell them to. If companies could successfully advertise on social media sites, they could be the conductors of the viral word of mouth train. Luckily, they developed ads that didn't block your view or were over-the-top obnoxious. The ads were so subtle that kids could not distinguish between actual content and advertisements.

It is amazing to see how this advertising phenomenon started. Now, Facebook has developed a new advertising system that can use your content (status updates, wall posts, etc.) as an ad for a company. I recently created a post about this, and it can be read here. Facebook is also experimenting with real-time ads that will analyze your status, "Man, I could really go for some pizza..." and develop an ad with a coupon from a local Pizza Hut. Ad Age recently published an article about this. Overall, social media advertising is absolutely new to our market! Luckily, there are jobs sprouting everywhere in this marketing sector. Just imagine what kind of ads will be running in jus a few short years! It will be so intriguing to see how his develops. Hope you enjoyed the post! Please discuss your thoughts in the comment section below.

Your Content Used for Ads on Facebook?

I just came across an article that discusses how Facebook is testing a new ad system that uses content, status updates, and posts of current users for advertisements. For example, I "like" Breckenridge Ski Resort on Facebook. Lets say that I make a status that tags Breckenridge and explains how much fun I had there this season, or I post something on their wall about how I love their resort. That content, based on this new ad system, could be used as an advertisement for that company. This will take advertising to the next level. These statements are more or less testimonials, and are extremely effective since word-of-mouth and beliefs of people in our network are some of the most important factors consumers consider before trying/buying a product or service.

But will this cause problems? Perhaps. I can see people strictly making posts about things just to get their 15 seconds of fame. Another aspect that could be an issue is that some people might not want others to see their opinions about specific products or services. Plus, some individuals will naturally be concerned with privacy issues. Regardless, it will be interesting to see how Facebook's new ad system works out. It is anticipated to raise over $2 billion in ad revenue. What are your thoughts?