In the local Sunday paper, there was a Bloomberg News Service story about Facebook’s recent influx of cash from Russia-based Digital Sky Technologies, and what that means to Facebook’s total valuation. (I couldn’t find the exact story on line, but here’s a similar one with the below tidbit.)

In that story, there’s this tidbit:

“Facebook and MySpace may have a combined $820 million in combined sales this year, a fraction of the $45.7 billion online advertising market, according to New York research firm eMarketer Inc.”

In that same story, there’s this forecast:

“Facebook generates sales through advertising. The company expects revenue to climb 70 percent this year.”

While that sounds positive for Facebook and I would think advertising on social networks in general, I can’t see where advertising on social networks is the best bang for the marketing buck. CTRs stink on Facebook. And, overall, social network ads get little attention.

If you want to reach social network members, go ahead and advertise for awareness, but don’t spend a lot of money on it or expect a lot of returns. What should you do to market on social networks?

Be social.

Engage.

Connect.

Those are nice words, and let’s look at some ways they can be used:

  • Start a page or group — and make it active.  Make sure someone in your business or at your agency is in charge of making that page active. Post information and value of interest to member and potential members — not just about your company or product.
  • Engage members by starting discussions; seeking opinions; feedback on product ideas, industry tips, trends, etc.
  • Drive membership while showing value to current members or fans with a contest. Consider regular, but small contests that’ll result in beneficial exposure, mentions, testimonials, etc., of your brand.
  • Develop and promote a widget that provides value around your company, product or service.

Ultimately, do regular activity that gives value to those you want to reach.

Do not broadcast ads — that’s old-media, one-way communication on new media, interaction platforms. The two just don’t mix.

When in Rome, be like the Romans.

Be social on social networks.

What other ways can companies and associations engage with their audience on social networks?
-Mike