Social networking sites grab big slice of Web ads

About one of every five Internet display ads in the United States is viewed on a social networking Web site like MySpace and Facebook, according to a new report.

The report by analytics firm comScore underscores the increasing prominence of social media sites in the Internet landscape and broadening acceptance of the sites by brand advertisers.

It also illustrates the increasing competition between social media sites and established Internet companies like Yahoo Inc and Time Warner Inc's AOL which have long billed themselves as the top online destinations for brand advertisers.

The study by comScore, released on Tuesday, said social media sites represented 21.1 percent of U.S. Internet display ads in July, with MySpace and Facebook accounting for more than 80 percent of those ads.

"Because the top social media sites can deliver high reach and frequency against target segments at a low cost, it appears that some advertisers are eager to use social networking sites as a new advertising delivery vehicle," said Jeff Hackett, senior vice president of comScore.

According to comScore, AT&T Inc, Experian Interactive and IAC/Interactive Corp's Ask Network were the top three advertisers on social networking sites in July.

While social media sites have enjoyed a surge in popularity in recent years -- Facebook is now the world's fourth-most visited Web site -- some observers have questioned whether the sites can be effectively monetized.

Because the content on social media sites is created by users, and could therefore prove racy or offensive, some have questioned the willingness of marketers to place their brands alongside that content.

"They are sensitive to some extent, but nowhere near to the extent you might think," Sanford Bernstein analyst Jeff Lindsay said of advertisers.

The price of placing ads on social networking sites is significantly less than on a Web portal like Yahoo or AOL, said Lindsay. The vast amount of Web pages available on social networks means that advertisers can purchase a massive volume of ad impressions at bargain prices.

The strategy may not be ideally suited to smaller marketers, or advertisers seeking a direct response from their ads, said Lindsay.

"For big, national brands it works just fine, just like TV," said Lindsay. "It's a huge, huge volume game."

PRC website hacked again

The website of the Professional Regulation Commission was hacked Friday night, the second such attack this year against the government-owned site.

An official of Defcon Philippines sent a screenshot of the hacked site, which was listed as "suspicious" by search engine Google as of posting.

Google said part of the site was listed for suspicious activity twice over the past 90 days.

"Of the 107 pages that we tested on the site over the past 90 days, six pages resulted in malicious software being downloaded and installed without user consent. The last time that Google visited this site was on 2009-08-20, and the last time that suspicious content was found on this site was on 2009-08-06," the Google advisory said.

It noted that the site was distributing malicious software including trojans and scripting exploits. It said that while the site is not hosting the malicious software, third parties might have added malicious code to the site.

A blog site earlier said the PRC had been defaced and hacked last April 1, 2009. The site was restored in less than 12 hours.

Election websites raise privacy concerns

If radio, TV, print and multimedia ads weren't enough, potential candidates for the 2010 elections are taking a page from US President Barack Obama's successful 2008 campaign and launching their own interactive websites.

Some of the politicians who have their own websites are Sen. Loren Legarda (www.lorenlegarda.com), former president Joseph Estrada (www.erap.com), Sen. Francis Escudero (www.chizescudero.com), Sen. Manuel Roxas (www.marroxas.com) and even Sen. Jamby Madrigal (jambymadrigal.com).

Two websites, however, are offering more than just information about the candidates.

The Akalamo website (www.akalamo.com) of Sen. Manny Villar is gaining a lot of hits after it offered to raffle off free cellphones.

To become eligible for the prize, one has to sign up their name, e-mail address and cellphone number. The sign-up page also indicates that the website owner can use the information and contact details.

The website also encourages users to post their photos online.

Another website maintained by Metro Manila Development Authority chairman Bayani Fernando is awash in the MMDA chief's favorite blue and pink colors.

It has an interactive game -- "Be The Chairman -- that allows users to solve various problems such as traffic and sidewalk obstructions. Each finished challenge awards users "pogi points" while animated photos of the MMDA chief congratulate you for a job well done.

At the end of the game, users are asked to submit their name, e-mail address and contact number to make their entry valid. Two users who get the highest points will get laptops worth P16,000 to P24,000.

Camille Madrigal, spokesperson of akalamo.com, said the prizes are meant to encourage users to become more active in the site. She said the user info will be used to send updates and invitations to events sponsored by akalamo.com.

IT expert Jerry Liao, however, said the public should be careful about giving information online. He said the information could be used to build a database that would be used for spam e-mails and text.

"Pag nag-sign up ka at binigay mo e-mail add mo at cell number mo, kapareho na yun sa pagbigay sa kanila ng permission na padalahan ng mga campaign or promo messages. In essence they are building a massive database," he said.

The National Telecommunications Commission said the website promos are legal since the campaign period has yet to start.