Abysmal Click-Through Rates on My Space, Facebook

From Business Week:

“Social networks have some of the lowest response rates on the Web, advertisers and ad placement firms say. Marketers say as few as 4 in 10,000 people who see their ads on social networking sites click on them, compared with 20 in 10,000 across the Web. Mark Seremet, president of video game publisher Green Screen, stopped advertising on MySpace last spring because of a 13-in-10,000 response rate. ‘It’s really hard to make money on that anemic click-through rate,’ says Seremet.”

Google admits they’re struggling with the same issue, and their stock got hammered on the news.

Meanwhile, advertisers who recognize that building awareness, preference and affinity with customers involves activities other than clicks alone are finding more success in social networks. Examples include Intel, Dell, Wacom and HP, to name a few.

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