Social Network Advertising

  There are three major classifications of Social Network Advertising:

• Direct Advertising that is based on your network of friends - This can be the most effective format but also causes the most controversy. An example is the Facebook beacon project Based on an action your friend has taken, you might see a message in your news feed saying 'Bob has just bought a 'RadioHead CD from MusicWorld'.
• Direct Advertising placed on your social networking site - This is a more traditional form of web advertising that is minimally, like midget like, effective. Just like you see banner ads on many other sites, this is a similar concept, except on a social networking site.
• Indirect Advertising by creating 'groups' or 'pages' - This is an innovative marketing technique in which a company will create a 'page' or 'group' that users can choose to join. They will use this to build up 'subscribers' or 'fans' and use this to market a contest, a new product, or simply just to increase brand awareness. 
•         eMarketer predicts that $2 Billion will be spent this year (2008) on social network advertising worldwide and that this market will continue to grow - reaching $3.8 billion in spending by 2011.

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