Friday, October 9, 2009

The click thru thruth

The amount of money that brands are willing to pay for online advertising is huge, but it is not always a key to success. As a matter of fact, many ads on websites suffer from a low click thru rate. The reason might be that people are not in the right mindframe. For instance, they aren't looking for information about certain things when they are using social networks. But this doesn't mean they can't do anything about it. Eventually, Facebook can use its news feeds to create new and repeated traffic to a lot of websites. If this creates a large volume of e-traffic, Facebook will make a lot of profit selling increased distribution. The biggest challenge will be to preserve the quality of the user expercience. At that point, Facebook will become more powerful than 'google', because Facebook is situated between people and their friends.

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