The Facebook stock trading roller coaster ride has inspired a flurry of debate over whether or not companies can actually make money on social networks. The debate has also expanded into the bigger picture: is online advertising effective? Not surprisingly, it depends on whom you ask.
Whatever articles you may have read, or experts you’ve heard, one thing remains constant: You can count on getting a favorable analysis from any company or organization that is actively involved in the commerce of social network advertising. Just as doctors advocate medical care, lawyers promote legal consultations, and car salesman support the auto industry, those who make money from internet activity will tell you glowing accounts of the profits to be had advertising on the web. File that under Cynical but True.
Before the Internet, business people had to depend on trade magazines to get the latest information on their industry. But even then, one had to be at least a little bit skeptical. For example, you’d never expect to read a negative article on the latest six-color Heidelberg press in American Printer magazine. The last thing a publisher wants is to alienate their advertisers.
In the case of selling and publishing ads on social networks, are the experts handing us a bunch of cyber-hype or are they on to something more substantial? I can’t offer anything better than do your homework and be your own advisor. In most cases the last person you want expert information on something is the guy trying to sell it to you. Cyncial but true.