BusinessWeek posted an article that I think highlights the potential and uncertainty about this new social networking market. I regularly point clients and friends to it, and if you’re trying to explain this new market, I’d recommend you do too.

“Building a Brand with Widgets” by Rachael King

“It’s surpassing our expectations,” Peterzell says. A growing number of companies hope they’ll be wowed by widgets, too. Electronic Arts (ERTS), Viacom’s (VIA) Paramount Pictures, Sony Pictures, Gap (GPS), Hewlett-Packard (HPQ), Hallmark, and Blockbuster (BBI) are among the businesses hoping to spread a marketing message or raise brand awareness through these modules of content used by millions of social network users to customize profiles or communicate with friends.

The article begins optimistically, but quickly points out that many campaigns have difficulty in standing out in an overcrowded widget market.  From my chats with Nick O’Neill at AllFacebook.com, a good strategy is to supplement any social media campaign with real advertising dollars.   Companies can take advantage of the many burgeoning banner networks, like RockYou or Slide, and implement a Cost-Per-Install advertising campaign for only a few thousand dollars.  The great aspect of a CPI campaign is that it only costs the advertiser money when banner-viewers click on the banner and subsequently install the application.  That way, the general branding that goes along with each banner view is in fact, free.

Tags: Advertising, Marketing, Social Network // Add Comment »