Social Media – Where’s the Money?

We all know that social media has changed the landscape for, well, practically everything, significantly.  A persistent question, though, is – where’s the money?  “Advertising,” says a senior analyst for eMarketer “Which some might say has already failed as a business model for social media companies – will not be the primary revenue driver.”  Ad spend on social media in the US vs the rest of the world, according to eMarketer, and will continue to do so.   What will become more important?  First off, location.  As mobile becomes more prevalent, location based ads will go right along with you, wherever you and your smartphone go. TV, as it becomes more social, will continue to play a big role in advertising.  But most of all, there is the chatter, the buzz, the natural occurring conversation that will spur marketers to generate more engagement.  Social media is already starting to change the way that companies either promote or even change their products and services.  This will continue to grow as consumer driven everything becomes the norm.

Still, although more than half of online shoppers use Facebook, half of the top 100 online retailers have minimal or no Facebook presence according to a recent study from ForeSee.  We have seen already that people are looking to build engagement with brands through special offers, discounts and product information. And of shoppers who use social sites, 81% of them are on Facebook.  So what’s the big hold-up?

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