Ads, ads, everywhere

So you think my discussions about monetizing social media interactions are esoteric?

Well, the ad execs at Google, Facebook, and Twitter certainly don't :)

I've written in the past about how users of search sites and social sites react differently upon seeing ads. I've also written about how Facebook is working to connect online ad views & interactions with offline purchases.

Well, here's a very interesting panelist dialogue about how Google, Facebook, and Twitter want to measure the success of ads.

Facebook, Google Ad Execs Spar Over The Value Of A Click

It's not surprising to me that Facebook's Rajaram is focusing very heavily on offline interactions as a result of online ads. As I wrote before, users of Facebook may not click on ads and directly buy products they see in banner ads, but the visibility of these ads at the right time and place can help guide them to purchase. As I called it back then, these mid-funnel users are key to Facebook's monetization of  its userbase.

Twitter is focusing on engagement metrics such as tweet responses or retweets. Google, unsurprisingly needs to look at a wide swatch of metrics including engagement (for social aspects such as on Google+), but also views, clicks, and ad forms (for ads based on search or context)

I suppose I'm overly enamored with this, but to me, these companies are finding new ways of growing their businesses. From the perspective of ads, they're finding new ways of getting people to react to the ads they see and eventually buy. People say Google is not really a search company, but an advertising company. I'd say that the way social media is evolving, Facebook and Twitter are as much about ad & media engagement as they are about social engagement.

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P'Oh My Gawd! - What you're obsessing about on Pinterest

A few weeks ago, I wrote about the differences in marketing to search vs social users and how Facebook is working towards monetizing user engagement. I thought I'd expand a bit more on this and talk about the hottest social/discovery site out there: Pinterest

If you're not familiar with Pinterest...well then, why are you reading this blog?! Go there and check it out now!

I'm not a huge Pinterest user, but in my several months of usage, I've seen a lot of Facebook friends begin following me on Pinterest as well. Since I don't pin very many things, those followers don't see much from me. But since I follow-back everyone, I see a lot of new pins every time I login. What have I noticed?

Well, safe to say that the stereotypes about Pinterest users are based on some fact :)

• Lots of female users
• Lots of pins about recipes, fashion, & home decorating

A series of desert recipes. Hmm...where to buy organic raw sugar?!

The more interesting thing I've noticed is that people seem to pin a series of items all about the same thing in a short period of time. It could be holiday dinner recipes or kids' bedroom designs or hairstyles, but people seem to obsess about really specific things. They may move onto other obsessions sooner or later, but pinning habits definitely show what users are thinking & obsessing about.

I'm not going to get into the pinning habits themselves, but I want to compare this with typical social and search usage:

• Social - Lots of random sharing about life, things you've read with a few specifics like check-ins or location-tagged photos. It's hard to really know what a social user is thinking at the time they login since the sharing is kind of random.
• Search - Lots of specific queries typically layered on with location specifics. It's easy to know exactly what a search user needs right at that moment, but the user will move onto different searches and may or may not come back to the topic.

Compare that with a Pinterest user:

• Pinboards are typically well-organized and if the "Pin-It" bookmarklet has been used, it's easy to link back the pin to the original site, therefore it's easy to build further organization based on where the pins came from.
• Users seem to focus on specific topics for a day...could be shorter or longer, but it's really clear what they're obsessing over during that time.
• Users may not be looking to buy anything at the time of pinning, but the pins are certainly things that inspire them or what they want to buy or re-create in the future.

So taking those thought onto the ad/marketing side of things...

There's been a lot of talk about click-through of Pinterest users where they end up on the original site from which the pin originated and maybe even buy. However, I think Pinterest as a targeted ad platform could be just as interesting. Afterall, pinboards are well organized and you can tell exactly what the user is thinking about. Not just randomly thinking about for a moment in time, but obsessing over.

Lots of wonderful decor ideas...time to get DIYing!

Sure, the user may not be ready to re-decorate the living room as displayed in a pin from Martha Stewart's site, but targeted ads from the brands highlighted in the pin or from related vendors will have a step-up with the user since they're already engaged and interested in what they have to offer. It could be an ad from Ethan Allen for a current sale or from Lowe's for paint which matches the one in the pin. On the local front, it could be an ad from Whole Foods for the maple syrup in a recipe or from Target for the mixing bowls.

It may seem difficult to tie-back all of this to specific products for which ads can be placed, but the reality is that most of the details aren't that difficult to obtain. Martha Stewart doesn't always list out brands especially if it's a home tour, but many other sites already do. Recipes already have the details listed out and fashion is typically tied back to specific designers.

My point is that Pinterest is positioned well to monetize the user engagement they've developed. Clicking-through to the original pinned site is an obvious way, but targeted ads are another possible direction. Due to Pinterest user-behavior, those targeted ads would likely be way more relevant than  ads that Facebook users see. Additionally, users aren't at the stage of searching for something they want...they've already FOUND things they love.

It's the perfect opportunity to convert interested and engaged users into buyers.

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Ad placement on Social vs Search sites

After my last post about experimenting with the ads on Facebook, I had a hearty FB convo with a friend about how ads on Facebook are almost always less relevant than what could be presented to a user if they're doing a search (Google, Bing, etc). It's interesting, since I sort of had that in the back of my mind, but it didn't click until this friend mentioned it and then I couldn't get it out of my mind.

In fact, I asked others on Twitter as well as Facebook about this and EVERYONE said they avoid the ads on Facebook. The most common reason I heard is that they're just not interested in looking at them while on Facebook and many said that when they did look at the ads, they were usually not very relevant. This general marketing malaise is pointed to in this article about brands shutting down their Facebook stores since users don't seem to go beyond clicking 'Like'.

As I've thought this through, I broke this down as follows:

On Facebook (or any social site for that matter), the user is very casual. They're likely on there to share something about themselves (status, photo, check-in, etc) or see what others are sharing. While they may stay on the site for a long time, the casual nature of their usage means they're not there for any particular reason. So even if an ad is relevant, it may not be relevant at that moment in time. If that's the case, then it can be very difficult to convince that user to spend more than a moment even glancing at the ad let alone actually click on it.

My friend's comments about FB ads

It may happen sometimes, but it's rare. Just to note how rare it may be, I've provided a screenshot of a friend's status talking about the ads she sees on Facebook.

On Google (or any search site), the user is typically very transactional. They're likely there for something very specific and want to get the most specific answer or result. The search results may be what the user is after, but an ad with dead-on relevance can be very important for the user. So even if they generally try to avoid ads, the ad placed at that moment can be exactly what the user is looking for.

I've got some thoughts about why ads aren't relevant in the moment when on Facebook, but I'll get to that in a future post when I talk about "big data"

This all seems so obvious now that I've mulled it through, but it does make me wonder what kind of ads could ever work in the context of a social site?

Well, lo and behold in the last two weeks we've actually seen some glimpses on Facebook itself and at their Marketing Conference (fMC). I saw the first instance as is described in Ryan Spoon's post about a sponsored Macy's ad which shows up at the top of the news feed. When I saw this ad, I was actually kind of confused by what I saw, but I think it's something we should (and will) get used to seeing. Here's a liveblog of the fMC from last week which goes over a lot of the direction that Facebook's headed. In some sense, they're breaking new ground in the ways that ads are presented to users and the ways in which they allow brands to use the platform to build awareness and potentially even sell.

And that for me is the key thing. It's very clear that a brand can build awareness through smart usage of social sites like Facebook. Whether it's a specific ad placement or an on-going engagement with users, I do think users will pick up brand messaging while they're on Facebook for casual, social purposes. However, I'm still very much wondering if that casual user can be converted into a transactional user who will do more than click 'Like' but will also go on to purchase something. That conversion is pretty clear on search sites, but I'm keen to see how that plays out in the new social web.

In future posts on this subject, I'm going to try and tackle the ways in which "big data" could be used to provide more relevant ads. I've got some thoughts on that, but I'd prefer to have further discussions with friends to help crystallize my analysis. For now, I hope you've found this interesting!

What are your thoughts on ad placement on social sites like Facebook? How do they compare to search sites? How does your mindset on either type of site affect your impression of ads?

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