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Social Media = Waste of Money?

icon1 Posted by PPC Fanatic in Advertising Networks on 01 6th, 2009 | no responses

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You have probably heard the concept of red oceans before. In case, you haven’t heard of it, a red ocean is a market that is highly competitive and has a set of defined boundaries. Basically, the competitors try to outdo each other by grabbing more market-share in these defined areas. I believe, the Adwords game has become a red ocean strategy, and that is probably why folks are using other sources such as Facebook social ads to avoid paying a fortune for traffic.

Facebook social ads, Stumbleupon, and even LinkedIn ads are all great areas to explore. But folks who are going to these markets thinking that they are going to get a high conversion rate are highly mistaken. I am all for adopting a blue ocean strategy, but throwing money at social media hoping to get Adwords results is not a good strategy. The truth is, the audience is very different between these channels, and as such the conversion rate will be different as well.

I am not claiming that spending money in the social media is a total waste of time. You can get nice traffic from Facebook and Stumbleupon, but converting that traffic will be difficult. And you can say the same thing about Digg traffic. At the end of the day, it wouldn’t hurt to spend some money in the social media, but don’t go around throwing your Adwords budget at Facebook as that would only lead to heartbreak.

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