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Advertising Makes The Social Web Go ‘Round.

We’re living in strange times. Today, most bystanders think the online advertising world is slowly grinding to a halt, but a quick study of the social web tells an entirely different tale. Everywhere you look, companies like Facebook, Reddit, Spotify and now even Verizon are betting on advertising to drive future revenue growth. The stories attached below provide an interesting overview of what each of these companies is doing (and how they’re using advertising) to drive revenue growth. The dichotomies between traditional web publishers and social media companies are quite interesting when you start looking into the differences.

What approach separates these social web platforms from media sites on the free and open web? It seems the question is this year’s billion dollar conundrum. It’s a complicated riddle to crack (no one has yet), but there are two parts to the equation that stick out more than others: social platforms own walled gardens around their products; social platforms own highly sophisticated audience targeting stacks that let them segment their audiences and sell inventory directly to advertisers.

One of those things will be hard to replicate for media and publishers online (walled gardens are not the answer). The second, however, isn’t as far out of reach as one may expect. In fact, media companies are starting to buy up ad tech companies in an attempt to regain control over their technology stacks.

Advertising on the internet is here to stay. The margins may be a little slimmer than they were previously, but if you have an audience worth pursuing, advertising campaigns will still follow. Social media networks don’t own web audiences in their entirety, but they do provide advertisers with a streamlined process for building and purchasing targeted campaigns. The approach is something worth borrowing.

Adtech is alive and well, no matter what the alarmists are declaring.

Todd Garland, CEO and Founder at BuySellAds

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