Group M

Why social networks are still waiting for their ad boom

July 22, 2010: 7:44 PM ET

The Facebook and Twitter explosions has changed how we communicate -- but isn't resulted in a massive ad spend. That's about to change.

The growth of social networks like Facebook, LinkedIn, social gaming sites like Zynga and services like Twitter are ripe for new forms of advertising as they occupy more and more of our online attention and time. What form that advertising will take is very much a work-in-progress concluded a panel of experts on Thursday at Fortune's Brainstorm Tech conference in Aspen. Online advertising on social networks captures less than 5% of the market, yet people are spending more and more time with a growing variety of social services on the Web. There are other models for making money from the sites  - selling virtual goods and subscriptions among them -  but  it seems clear that advertising will play an increasing role.

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  • What to watch for at Brainstorm Tech

    From tablets to conflicts, business models to investment opportunities -- what we are hoping to hear.

    By Shelley DuBois, reporter

    Fortune's 2010 Brainstorm Tech conference kicks off tomorrow in Aspen. Here's a preview of some of the questions our moderators will be asking top tech execs.

    -Twitter, Zynga and LinkedIn are courting online ad money. Group M CEO Irwin Gotleib has a ton of it - his company is a major media-buyer. Group MORE

    Jul 21, 2010 3:31 PM ET
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