Ok, let’s scratch MySpace and Facebook off our mind for a moment. Social Networks have experienced many challenges in monetizing their networks mainly because users find value in each other, not the network. As new ad models are tested and fail, a new company, mediaFORGE intends to add value in online ads.
The problem with traditional ads on social networks is they are still using old advertising formulas on new mediums. Social Networks are looking to change their ad formats, formats that engage their audience and deliver high CTR ratios resulting in more revenue. I’m lead to believe this when Social Networking Ad Revenues are expected to shrink, quickly, over the next several years.
I’m an optimist, though. The challenges that face traditional social networking advertising, are the same challenges that Google, print newspapers and General Motors are all too familiar with: Innovation.
MediaFORGE aims to change all that. They offer advertising solutions (let’s call them ‘Ad-Widgets’) to advertisers and social networks by enabling advertisers to deliver value in their ads. Instead of “click here” (which is the implied call-to-action in a majority of online ads), the goal of their ad formats are “use me.” On their Web site, their examples are rather inconspicuous, but you get the idea — engage the audience with an ad so people find value in it.
What do you think? Is there hope in salvaging ad revenue in the Social Network space?