Twitter advertising models emerging, quickly « What Matters Online

Twitter advertising models emerging, quickly « What Matters Online: "Well, it was inevitable–but I’ve got to say that I’m a bit surprised at how fast things are moving. While it’s still very early in the game, it looks like advertising and marketing activities are beginning to creep onto Twitter."

Helge: Where you have active people marketers are watching for the perfect time to move in.

"As regular readers of this blog know, I believe that Twitter can support advertising without ruining the experience. That doesn’t mean, however, that all models are equal. As in any other Net medium, spam is a pain, and reports are already surfacing of spammy advertisers following people. On the other hand, I do think Mashable’s story, headlined “Twitter Spam Spirals Out of Control,” goes a bit overboard, as I, for one, haven’t attracted any spam followers yet," writes Anne on her blog.

Helge: I'm happy with Twitter and Jaiku.

She continues, "More interesting than the spammers, by far, is the eBay auction by Twitter user @andrewbaron, who’s selling off his Twitter account and nearly 1,400 followers. With nearly a week left to go on the auction, Baron has already attracted 40 bidders. What’s more, the bids have now topped $1,500–valuing the followers at more than $1 each. While Baron doesn’t describe his follower list as a marketing opportunity, I’m doubting the people bidding on it see it as anything but that."

Helge: Social Media Relationships have a value. I see an identity problem here. Every person is unique.

About Anne

I’m a consultant, interactive analyst, marketer and writer who has followed the biz for almost 20 years. I help companies solve their most complicated communications and strategy problems.

Techcrunch: Microsoft and Yahoo Merger

Techcrunch: "Big mergers tend to fail more often than not, especially when companies are trying to combine operations as opposed to adding on new standalone capabilities. One of Microsoft’s biggest mergers was Great Plains Software, which was a success specifically because Microsoft pretty much left it alone for a couple years and let it operate independently.

Helge: Let it operate independently is not an option with Yahoo!

That is not an option with Yahoo. the merger is a collision waiting to happen. Integration is going to be rough and will slow down the merged company. Nobody believes that a combined Microsoft-Yahoo will be a nimbler competitor than either bureaucratic organization is today on its own.

Helge: MSN might suffer more than Yahoo in the beginning.

Not that any of this matters from Microsoft’s perspective. The logic of the deal is to gain scale as an advertising platform and as a Web publisher. the two go hand in hand. The more Web pages and traffic you have, the more ad inventory you have to sell. Everyone is focused on search, because that is where Google is so dominant today.

Helge: Inventory to sell.

But remember, while search ads make up about 40 percent of Internet advertising revenues, display ads still make up about a third. And that is where Yahoo is strongest. Microsoft needs to bulk up on display ad inventory before Google’s DoubleClick deal goes through. If it can fix search, that would just be a bonus.

Helge: Display ads into context!

A combined Microsoft-Yahoo will help it compete against Google in display advertising, which is still an open game..."

Online Advertising's Great Digital Race

Online Advertising's Great Digital Race: "In the last couple years, digital advertising has looked a little like an ultramodern version of the great race to the west coast.

Helge: Digital Advertising made Google what it is today.

Are there any corners left in the online world where advertisers can plant a flag? In the great digital race to monetize the Web, what will they think of next? Plenty.

Helge: The race will continue 2008?

Although it would be wrong to say that digital advertising is still in its infancy, it is still a young industry. By most accounts, online advertising still represents less than 10 percent of companies' overall corporate ad budgets.

Helge: Are we in the beginning? Less than 10 percent!

Looking ahead to 2008, it is hard to steer clear of the ominous talk of recessions, credit crises and the attendant mortgage fallout. The Fed's been cutting rates and the president has pledged to freeze the rates of hundreds of thousands of subprime borrowers who got swept up in the real estate boom in the first half of the decade. All to forestall a potential recession that some analysts warn is inevitable.

Helge: Credit crisis, mortgage fallout, potential recession...?

The belt-tightening is already underway, according to reports from two of the world's largest advertising groups. Universal McCann and ZenithOptimedia predict that overall ad spending will see only modest growth next year, but that the industry will not enter recession.

Helge: Are companies spending less on advertising?

The outlook may be somber for the ad industry at large, but analysts look for online spending to buck the trend."

Helge: We'll have more of it. It's still the beginning.