It would be easy to be bearish on the monetization prospects of social media. The lackluster performance of high profile IPOs has created a wave of negative headlines that has much of Wall Street (and Main Street) convinced that the space is a lot of hype, and maybe even the second coming of the dotcom bubble.
But those headlines ignore most of the key trends we see happening right now across the social media space and here at Mashable. Although we may be a biased observer — after all, digital advertising keeps the lights on at HQ — there are several compelling reasons to be excited about the marketplace heading into 2013 and beyond.
The skepticism around social media stems largely from the perception that the audience — especially on bellwethers like Facebook and Twitter — is moving quickly to mobile devices, where monetization has proven difficult. Kleiner Perkins partner Mary Meeker illustrated the monetization gap in her widely circulated annual trends report, which showed that although mobile now occupies 10% of people’s media consumption time, it commands just 1% of advertising budgets. – Why It’s Time to Get Excited About Digital Advertising by Adam Ostrow