1. Advertising on Social Networks
Advertising on Social Networks was an effective way that advertisers found to
solve the problem that was created by the invention of TIVO.
TIVO
TIVO is a brand and model of digital video recorder (DVR). TiVo DVRs provide an
electronic television programming schedule and features such as Season Pass
recordings which ensure subscribers never miss an episode of their favorite shows;
and WishList searches which allow the user to find and record shows that match
their interests by title, actor, director, category, or keyword.
So, in order to keep reaching people with their ads, advertisers had to understand
how to do it.
“MOVIEGOERS 2010”
This study was made to provide film marketers with actionable insights into how to
best reach movie consumers over the next decade.
DVRs have changed how moviegoers watch TV:
• 52% of moviegoers have DVRs
• 80% watch programs according to their own schedule
• 71% fast forward and skip commercials
• Only 17% primarily watch live TV
Fact: Digital technologies have gone mainstream.
People spend more time online than watching TV. So, advertisers have to use
Internet to reach the consumers.
Most moviegoers place more value in friends’ opinions and consumer reviews than
they do in professional critics. They give very importance to what their peers think
and if they tell them that something is good they intend to believe them. The Group
thinking is very important.
That is why advertisement is using social networks.

2. Advertising on Social Networks
Social networks are growing to be something much more than just new exposure
opportunities for advertisers. With the way technology is developing, advertisers
may have an opportunity to operate inside social networks in some new, very
compelling ways. Essentially, the network is becoming a platform. That invites us
all to think about some issue, some product. More than one in five of all online ads
are served on social networks.
Facebook
Take Facebook is an example. This social network began as a closed community of
college students. It grew to allow high school students and, now, everyone.
Opening the doors was evidently a fantastic move.
There are several reasons to believe social networks like Facebook are only going to
get stronger and bigger; the primary one being they're becoming more useful.
Advertising on social networking sites is growing fast. Last year global ad spending
on these sites shot up 155%, to $1.2 billion, says researcher eMarketer. This year,
eMarketer expects it to jump 75%, to $2.1 billion.
One of the major benefits of advertising on a social network is that advertisers can
take advantage of the users demographic information and target their ads
appropriately.
Here we have an example of “how to advertise your business on a social network”,
facebook teaches people, step by step, how to create an ad.
There are three major classifications of Social Network Advertising:
• Direct Advertising that is based on your network of friends - This can
be the most effective format but also causes the most controversy. An
example is the facebook beacon project. Based on an action your friend has
taken, you might see a message in your news feed saying 'Bob has just
bought a 'RadioHead CD from MusicWorld'. This can be an extremely
effective mode as often people make decisions to purchase something or do
something based on their close group of friends.
• Direct Advertising placed on your social networking site - This is a
more traditional form of web advertising. Just like you see banner ads on

3. many other sites. These social networks can take advantage of demographic
data on your profile and hence target the ad directly to you.
• Indirect Advertising by creating 'groups' or 'pages' - This is an
innovative marketing technique in which a company will create a 'page' or
'group' that users can choose to join. They will use this to build up
'subscribers' or 'fans' and use this to market a contest, a new product, or
simply just to increase brand awareness. These groups can quickly grow in
numbers of subscribers which can become a very effective marketing tool.
CONCLUSIONS
Leverage the power of social networks online to control and participate in Group
Think.
Find someone inside a group that can influence the others. It is very important to
be where the consumer is, to know what he thinks, what are he’s interests in order
to reach him.
In summary, online social networks are here to stay and will continue to gain
traction and offer users more interactivity than other media. Advertisers are going
to need to take some responsible risks in the new channel.