I guess this is what counts as "bad news" for social networks. Anecdote reinforcing a single data point spun into a death nell for social networks: Generation MySpace Is Getting Fed Up. This is a bit of buzz backlash: anti-buzz buzz.
While the reporter barely comprehends the social network ad
space moderately well (Beacon isn't an ad platform), I agree with the implication that "banners don’t work on
social networks"… that is: when they are CPM buys. CPC media looks like it can work.
We've got a testing going for instance that is delivering a nice order volume at
a CPO half of search. Not as much volume as your average Google campaign but huge impressions and
good conversions off of the clicks, even though CTRs are low.
Let's call this "Social Performance Marketing", realize that this doesn't mean flooding users with undifferentiated and untargeted banners and get on with figuring out how to engage and connect with the people now "living" on social networks...