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My Thoughts on SocialMedia

A few weeks ago, Matt introduced me to SocialMedia. At the time, it seemed like a good idea: I place my ad on hundreds (thousands?) of applications on various social networking sites, and I get a billion cheap clicks. Well, it’s true. You do get a billion cheap clicks. The thing is, none of them convert (at least for me). It’s a great system in theory, but I just can’t get it to work in practice.

What is SocialMedia?

SocialMedia is a neat little tool that partners with the owners of applications on social networking sites. It’s kind of like Adwords: The publishers place the ad blocks on their applications, and the advertisers pay (per click) to display ads on them. Simple, right? Like anything, the system has it’s pros and cons.

One of the things that I really like about SocialMedia is that they don’t overcharge you. If you specify $0.10 per click and budget $50, you’ll pay $0.10 per click all the way up to that $50 (or 500 clicks). The thing is, the system won’t immediately yank your ad, and if you’re getting clicks very quickly, you’ll end up getting a ton for free (or, if you want to look at it a different way, your $0.10 CPC becomes $0.05, etc). Whether you get 500 clicks or 1,500 clicks, you only end up paying what you specified. I’ve gotten $0.02 clicks this way before.

On the other hand, they system is incredibly clunky and tedious. For starters, it can take anywhere from half an hour to two days to get your ads approved. The ad creation system is fairly limited, and there’s no way to automatically duplicate ads with different URLs if you’re doing split testing. On top of all that, they only accept Paypal payments.

My problem’s really not with the system though. My problem is with the audience.

Target Audience

Who compulsively uses Facebook/Myspace/Bebo? Why, people between the ages of 13 and 22, that’s who. People who (in theory) don’t have a whole lot of disposable income. That’s not a problem though, right? You just do lead-gen campaigns, right? Well, I’ve always assumed that Myspace = moron, and so far my testing with SocialMedia has backed up that assumption. For starters, I’m led to believe that nobody on social networking sites actually reads the ad text, and just clicks around their screen randomly, hoping to get to where they’re going. Case in point: I ran a ZIP submit offer, and the ad text clearly stated “Enter your ZIP code to blah blah blah.” Hundreds of clicks. Tens of leads.

Of course, maybe I’m just picking on Myspace. After all, you don’t need little old me to tell you that its users are all a bunch of idiots. That’s common knowledge. What about Facebook? Well, Facebook users tend to convert better than Myspace users… by about 1% or less. My theory is that the Myspace users are migrating to Facebook, resulting in an average loss of intelligence as a whole.

Overall

I’m just not having any luck with this service. To me, advertising with SocialMedia is like filling a bucket with pennies and dumping them off the Empire State Building. Sure, one or two pennies might hit someone right in the forehead, but the rest will all miss and be wasted. You get little to no results from a large investment. If I were you, I’d experiment with it a little, but don’t sink too much money into it.

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3 Responses to “My Thoughts on SocialMedia”

  1. Bolts for Brains Says:

    Yeah I’ve had the same experience with Socialmedia, I’ve blown over $200 trying it out, Facebook, Bebo….and nothing..its easy to get into the mindset that you are getting $0.10 clicks for FB traffic (when they’re asking for $1.05+/click) but it is definately not the same type of traffic…I looked through Matt’s comments on his site and I read that his profit on the xbox 360 contest was about $200..so its not really anything to write home about..

  2. Jason Says:

    Hmm.. I did not know that they took payment through Paypal.

    Have you tried fill-form-for-college-scholarship offers? Could convert better than your average ipod (smarter people tend to want college scholarships) and they pay a lot better too…

    I will be trying this out :razz:

  3. Rajaie AlKorani Says:

    Finally! Someone that shares my views about Myspace users

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