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Social Advertising Cometh

August 21, 2009

vcmike

Like all the other social web geeks out there, I have been captivated by the notion that the social advertising revolution presents an opportunity to build the web’s next billion dollar business. Yes, I drank the Kool-Aid — whole damn pitcher of it.

But then my bubble would get burst and I would float back to reality when I speak with more level headed web media/advertsing types who would point out that all this buzz for social advertising was spinning out of what actually were meager experimental ad campaigns, and I’d start to feel like my web 1.0 brethren who couldn’t stop proselyting how their petfood.com portfolio company was going to be the next big IPO.  I guess it is an occupational hazard that early stage VCs often get wildly excited about their investments — and often are wrong.

However, over the course of the last week, I noticed something. Many of those same damn sober-headed, straight-laced analytical types who typically burst my bubble are coming around to the view that the big brands are deadly serious about social advertising and are starting to allocate very real NON-experimental 2010 ad budget dollars to the category.

When you see both wild-eyed web zealots AND the bubble-bursters believing in something, then you know it is coming…right?

2 Comments

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  1. August 24, 2009

    Once we determine the “why” behind a migration to social advertising, we’ll have a better idea of its sustainability. Cost is likely driving dollars there right now. I do belive there is revenue to be had in this new channel, but the shape(s) it will take are not yet fully formed.

  2. August 24, 2009

    Hello Mike,
    I couldn’t agree more. Just as Monster ended the classified job ad, social networking will be doing the same for segments of business where reference and background are essential. Why do you think Monster announced that it was getting into the obituaries business yesterday? They may be late to their own funeral.

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