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Social media’s uphill advertising climb

Posted by Mort Greenberg on June 5, 2008

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That was the dour prediction of an advertising executive after a day of start-up presentations from a tongue-twisting list of tech companies–including Verismo, Mytopia, Loud3R, Jacked, Sometrics and PutPlace.

Not that the start-up pitches were boring or hard to swallow. It’s just that similar to the dot-com heyday (and eventual bust), the success of many social media companies is tied to online advertising spending. And guess what, after nearly 10 years of hand-wringing over Internet advertising models, traditional brands are still not spending the many millions of dollars online that they regularly do on TV commercials.

Even more relevant to social media is that traditional advertisers are especially cautious when it comes to the idea that their brand logo might appear next to an image of a marijuana leaf posted by a 16-year-old. Never mind that Facebook’s audience rivals that of some television networks.  CLICK HERE TO READ THE REST OF THE ARTICLE


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