The fast growth of technology has exponentially changed how we use the Internet. It has made businesses take a serious look into how to take advantage of the new version of the WWW or Web 2.0. Companies are forced to adapt in order to make the most of internet-enabled channels. This article talks about how social networking sites and search engines have changed the rules of the advertising game.
Social networking sites such as Facebook, Myspace, and blog service providers (such as Blogger, Blogspot and Multiply) have created a new medium that has elevated “interweb interaction” to a whole new level. Facebook, for instance, boasts having over 200 million users, LinkedIn has 40 Million, and Twitter, a leading micro-blogging site, has almost 26 million.1
Google is arguably the most influential company of the decade. It has changed advertising more than any other business. Google has revolutionized the ad business by enabling marketers to pay for performance rather than space, time and eyeballs. It has opened up millions more places to place ads, increasing availability of ad channels.
Google has a simplified approach to advertising. It uses Google Adwords for advertisers and Google AdSense for site owners. With Google Adwords, advertisers only pay when people click on their ads. Companies can create ads and choose keywords related to its business. These ads appear when users search online—making specific information available to an audience looking for it. Google Adsense on the other hand enables website publishers of all sizes to display relevant Google ads and earn. It gives site owners access to Google vast network of advertisers, so they can show ads that are suited to the contents.
When Universal Studios first announced they were opening the Wizarding World of Harry Potter, they did so by telling just seven people. They invited seven avid Harry Potter fans to a top secret webcast to inform them about the plans for the new theme park. By word of mouth, these seven people told thousands through emails, internet forums and blogs. Eventually, mainstream media picked up the buzz and wrote about it in magazines, news, and TV reports. In a few days, the news reached millions of people.2
The concept of advertising spaces doesn’t quite apply anymore to the world of social networking because we are not talking about static space, billboards, newspaper ad space, and television spots. The internet, where billions of users (estimated to be 70% of total population) have spent some portion of their time viewing pages and exchanging information, is the new medium. Unknowingly, social network users have become natural channels for advertising. For example, while writing this article and simultaneously facebooking, I came across a recent post from Thiago Pierson, a Brazilian colleague of mine, talking about a great steakhouse in Fort Lauderdale. He wrote, “Chima Brazilian Steakhouse in Fort Lauderdale is the best one so far!!” Naturally, being the steak lover that I am, my tendency was to google it. I read the review and checked the menu. Now I am already making plans to visit.
1 http://helixcommerce.blogspot.com/2009/06/social-sites-are-everyones-space.html
2 The New Rules of Marketing & PR, David Meerman Scott
#Perspectives 
This is true, social networking in recent years has experienced an unparalleled wave. Nowadays people are accustomed to sharing just about everything through social networking, from simple day to days messages, online games, media, and sometimes even work or project related subjects. It is truly remarkable. I believe in the years to follow more and more social networking sites will blossom those of a more market specific demographic type. And its potential for commerce is enormous.
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Good point Rye. A lot of companies have started to take advantage of that potential. Imagine what happens next….
Saludos,
Glenn