About one of every five Internet display ads in the United States is viewed on a social networking Web site like MySpace and Facebook, according to a new report.
The report by analytics firm comScore underscores the increasing prominence of social media sites in the Internet landscape and broadening acceptance of the sites by brand advertisers.
It also illustrates the increasing competition between social media sites and established Internet companies like Yahoo Inc and Time Warner Inc's AOL which have long billed themselves as the top online destinations for brand advertisers.
The study by comScore, released on Tuesday, said social media sites represented 21.1 per cent of US Internet display ads in July, with MySpace and Facebook accounting for more than 80 per cent of those ads.
"Because the top social media sites can deliver high reach and frequency against target segments at a low cost, it appears that some advertisers are eager to use social networking sites as a new advertising delivery vehicle," said Jeff Hackett, senior vice president of comScore.
According to comScore, AT&T Inc, Experian Interactive and IAC/Interactive Corp's Ask Network were the top three advertisers on social networking sites in July.
While social media sites have enjoyed a surge in popularity in recent years -- Facebook is now the world's fourth-most visited Web site -- some observers have questioned whether the sites can be effectively monetized.
Because the content on social media sites is created by users, and could therefore prove racy or offensive, some have questioned the willingness of marketers to place their brands alongside that content.
"They are sensitive to some extent, but nowhere near to the extent you might think," Sanford Bernstein analyst Jeff Lindsay said of advertisers.
The price of placing ads on social networking sites is significantly less than on a Web portal like Yahoo or AOL, said Lindsay. The vast amount of Web pages available on social networks means that advertisers can purchase a massive volume of ad impressions at bargain prices.
The strategy may not be ideally suited to smaller marketers, or advertisers seeking a direct response from their ads, said Lindsay.
"For big, national brands it works just fine, just like TV," said Lindsay. "It's a huge, huge volume game."
Agencies
Showing posts with label AOL. Show all posts
Showing posts with label AOL. Show all posts
Wednesday, September 2, 2009
Friday, June 12, 2009
Two Web startups interest AOL
Internet pioneer AOL, which Time Warner plans to spin off into an independent company later this year, announced on Thursday that it had bought two small Web startups focused on local content.
AOL, in a statement, said it had purchased Patch Media Corp., a local news and information platform for local communities, and Going Inc., a platform for sharing information about events in major cities.
Financial terms of the deals were not disclosed.
"Local remains one of the most disaggregated experiences on the Web today -- there's a lot of information out there but simply no way for consumers to find it quickly and easily," said Tim Armstrong, who was hired away from Google this year to become AOL chairman and chief executive.
"It's a space that's prime for innovation and an area where AOL has a significant audience and a valuable mapping service in MapQuest," he said.
"Going forward, local will be a core area of focus and investment for AOL," Armstrong said. "The acquisitions of Patch and Going will help us build out our local network further."
Patch.com is currently available in five local communities in the United States and expects to be available in a dozen by the end of the year.
Going.com provides information for young people about what is going on in major US cities such as New York, Los Angeles, Chicago, Miami and Boston.
"By joining with AOL, we have the opportunity to greatly expand the reach of our platform to more cities both in the US and around the world," said Going chief executive Evan Schumacher.
AOL is currently the number four gateway to the Web after Google, Microsoft sites and Yahoo! and has been trying to refashion itself recently as a popular one-stop portal.
Agencies
AOL, in a statement, said it had purchased Patch Media Corp., a local news and information platform for local communities, and Going Inc., a platform for sharing information about events in major cities.
Financial terms of the deals were not disclosed.
"Local remains one of the most disaggregated experiences on the Web today -- there's a lot of information out there but simply no way for consumers to find it quickly and easily," said Tim Armstrong, who was hired away from Google this year to become AOL chairman and chief executive.
"It's a space that's prime for innovation and an area where AOL has a significant audience and a valuable mapping service in MapQuest," he said.
"Going forward, local will be a core area of focus and investment for AOL," Armstrong said. "The acquisitions of Patch and Going will help us build out our local network further."
Patch.com is currently available in five local communities in the United States and expects to be available in a dozen by the end of the year.
Going.com provides information for young people about what is going on in major US cities such as New York, Los Angeles, Chicago, Miami and Boston.
"By joining with AOL, we have the opportunity to greatly expand the reach of our platform to more cities both in the US and around the world," said Going chief executive Evan Schumacher.
AOL is currently the number four gateway to the Web after Google, Microsoft sites and Yahoo! and has been trying to refashion itself recently as a popular one-stop portal.
Agencies
Friday, January 30, 2009
Starbucks & AOL join in cutting jobs
Joining major companies cutting jobs as recession deepens, popular coffee giant Starbucks and internet services major America Online plans to lay off about 6,700 employees in the coming months. Starbus, which has reported a 69% drop in profit for the first fiscal quarter, has announced slashing its headcount by 6,000 and closing of 300 stores.
AOL chief executive Randy Falco sent an internal memo to employees about plans to cut jobs — 7,000 or 10% of its workforce.
Electronics parts maker Jabil Circuit says it is cutting 3,000 jobs mostly overseas, or nearly 4% of its work force, because of the global economic turmoil.
St Petersburg, Florida-based Jabil Circuit said about 10 of its global plant sites will be affected, and about 10% of the cuts will take place in the United States. It currently has 85,000 workers.
The company expects $55 million a year in cost savings as a result of the cuts, and will take a related pretax charge of about $65 million over fiscal 2009 and 2010.
About 3,000 Thai workers have reportedly lost their employment in the first month of 2009, while more than 60,000 others are at risk of losing their jobs soon, according to the ministry of labour.
Since the New Year, 50 private firms have closed, causing 2,863 employees to lose their jobs. Another 102 companies are likely to be impacted by the economic crisis, with 68,122 employees’ jobs to be affected. Of this number, 23,296 workers are likely to be laid off, while another 44,826 may be asked to reduce their working hours, director-general of the department of labour protection and welfare Amporn Nitisiri said in Bangkok.
In Malaysia more than 10,000 have lost their jobs since January 1, Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan has said.
Agencies
AOL chief executive Randy Falco sent an internal memo to employees about plans to cut jobs — 7,000 or 10% of its workforce.
Electronics parts maker Jabil Circuit says it is cutting 3,000 jobs mostly overseas, or nearly 4% of its work force, because of the global economic turmoil.
St Petersburg, Florida-based Jabil Circuit said about 10 of its global plant sites will be affected, and about 10% of the cuts will take place in the United States. It currently has 85,000 workers.
The company expects $55 million a year in cost savings as a result of the cuts, and will take a related pretax charge of about $65 million over fiscal 2009 and 2010.
About 3,000 Thai workers have reportedly lost their employment in the first month of 2009, while more than 60,000 others are at risk of losing their jobs soon, according to the ministry of labour.
Since the New Year, 50 private firms have closed, causing 2,863 employees to lose their jobs. Another 102 companies are likely to be impacted by the economic crisis, with 68,122 employees’ jobs to be affected. Of this number, 23,296 workers are likely to be laid off, while another 44,826 may be asked to reduce their working hours, director-general of the department of labour protection and welfare Amporn Nitisiri said in Bangkok.
In Malaysia more than 10,000 have lost their jobs since January 1, Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan has said.
Agencies
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