Social media’s uphill advertising climb

Article Source: http://www.webware.com

Article Link: http://www.webware.com/8301-1_109-9959358-2.html

By Stefanie Olsen – June 3, 2008, 9:00 PM PDT

MOUNTAIN VIEW, Calif.–Reality check: half of the social media start-ups at Tuesday’s Under the Radar Conference won’t exist next year.

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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