Social Net Influence Grows, No Great Revenues – Experts

Global media are likely to receive income from current sources, including display and other types of advertising in the future, although the social network influence on customers has been increasing, international analysts and experts said on Tuesday.

Jim Chisholm, a media analyst, told the International Future Media Forum in Moscow that although the number of internet users has been increasing in recent years, the digital versions of various newspapers and magazines did not generate revenue higher than publishing houses got from printed versions.

“The data from the U.S. shows that digital revenue is growing not so fast as the printing advertising is declining. One of the problems of the digital is that it does not compensate the losses from the advertising,” Chisholm said.

According to statistics, if the publisher sells 100 copies of its newspaper or magazine, they could expect 2.6 readers to read one printed copy on that day, while only 1.28 readers would read digital copy. The total number of consumed printed pages amounts to 1,521, while in the digital world the number of visited pages stands at 27.

Dennis Adamovich, official representative of Yahoo!Inc. in Russia, told the forum that the U.S. company did not put its activities in social networks on a wide scale as it would not expect huge revenues from them in the long-term and prefers to improve current types of advertising.

Social networks could form opportunities to increase companies’ revenue by effective campaigns, as it was with Puma when it launched its Facebook page in the digital world, Jiri Voves, co-founder of Socialbakers company focused on digital production in Facebook campaigns, said.

Such campaigns should include “a mixture of various types of content, including newsfeed, application and microformat” to become popular among users of social networks. The effectiveness of the campaigns could be calculated by dynamics of the fans flow on a certain page and users’ engagement in discussions as well as abilities of forming a new community, Voves added.

Positive attitude towards any company could worsen if it does not pay much attention to its on-line customers or followers of company pages in social networks, especially in Russia, Nikita Orfenov, coordinator of IQ Buzz project focused on reputation management in the internet, said.

Non-individual attitude towards clients’ claims or belated support worsen the reputation of companies’ services in customers’ minds as it was with social network client support of Russia’s largest independent bank Alfa-Bank or with the same service of the country’s handset retailer Evroset, Orfenov added.


Leave a comment