Social networks miss the point on advertising
Social networks like Twitter, Facebook and LinkedIn are slow to upgrade their analytics and research capabilities. In a recent article for AdAge, Jack Neff claims that this is because they are more interested in building advertising revenue. If what he says is true then social networks are missing the point. When advertisers have better tools for understanding the targeting and impact of their ads, they have greater confidence in the results and they inevitably spend more. In spite of its popularity and engagement with the public, right now social networks are experimental and fringe advertising media. Few ad planners will risk a sizeable percentage of their ad budgets on a young media with limited tracking and feedback. If social networks want a bigger piece of the advertisng pie they need to be able to demonstrate results and provide the tools for better targeting and monitoring of social campaigns. Better analytics might just be the best way to build that ad revenue the social networks are looking for.