Seeing how social media is impacting people's lives, day to day, in terms of time consumption, I am starting to think seriously that a small part of the economic recession is due to the more than a trillon people who are spending hours and hours just talking online and sharing things. Social media is time consuming and a big distraction when you are fully commited to a professional activity. I would like to think hard about this. I love social media, but we have to measure its impact in terms of productivity and opportunity cost.
Facebook Display Marketplace is up and running. This is a big competitor for Google. General CPC and CPM rates will drop because Facebook has introduced a huge amount of availble new display inventory into the RTB market. We will need to look at how advertising technology maintains general CPC and CPM rates over the next few years, based on advertiser's profitability. This is one of the next big challenges, again, for traditional media: falling advertising rates.
The key is to know what people want to buy next. Google did this with search, pinterest is doing this with pictures. We need to think outside the box to discover how we can predict what people will need to buy in the future and to be able to offer them the proper advertisement. The next company to discover this new technology or technique will be another great success in the internet business. To anticipate what a user has in mind before he starts to write it in a search box is one of the main challenges.
Social media is based on sharing and following, discovering and participating, but the most important thing is to be in the conversation. Companies need to manage this new marketing element on a daily basis and it is expensive. I think there is a good oportunity to solve this online marketing management problem. There are too many social media sites and platforms to have control over all the conversations that customers and potential clients have. Online marketing needs to unify the conversations to become more profitable.
Showing new hidden assets has been always a great business approach for internet companies. I still think that people's time is the best hidden asset that internet can capitalize on. Online platforms for freelancers and part time jobs will have a huge impact on the economy over the next few years. They will help the labour market to be more efficient. They will help companies to develop their business as they never have before: faster and better.
Finally, I am always thinking about the right combination in online marketing to succeed financially. My lastest thought is to combine four elements and make them work together like a unique system. I like to combine SEO, SEM, Social Media and Emailing. These four elements working together as one online marketing tool are so powerful and bring businesses the kind of online presence that internet companies require. But there is a fifth element: Display Adverting in RTB. The company that adds this new online advertising technology into their marketing mix, will improve their results in the way they did ten years ago with SEO and SEM. Here there is another big opportunity for marketers and online companies: to add this fifth element into the online marketing equation.
Over the next few weeks we can discuss these issues. Any preference to start?