Simple fact – advertising on social networks has extremely poor click-through rates and this is statistical proof that monetization of social networks requires a different strategy.

Know your customer. Why do social network users use these sites and what is their behavior when engaged on these sites? Does this constitute fertile ground for advertisers? A comment in the article states, "With a relatively small investment, companies can use social networks to cultivate relationships with customers who have already raised their hand and expressed interest in their brand or product." I am not so sure.

There must be a strategy of engaging with social networks and delivering value to users that creates sticky customers. Advertisers have not captured a valued relationship with social network users and their customers using social networks.

Monetization of social networks has failed thus far for one simple reason … vendors are focused on “what they do” and how to exploit “what they do” on a platform that serves masses (social networks).

BUT all this will change soon. Please contact me if you want to continue the discussion and learn more.

Steve Goldner
Opt-In
stevegoldner@optonline.net