San Francisco, CA (PRWEB) January 31, 2008
Bay Area online marketing company TellAPal is launching a revolutionary system of advertising to enable advertisers to reach the hundreds of millions of users of social networks. Based on "referral marketing," TellAPal is the first recommendation based ad network optimized for social media and advertiser ROI.
Today, over 230 million people globally use social networks. In 2008, US advertisers will spend over $1.6 billion trying to reach these users. Most of these ads are standard banner and display formats which don't provide the engagement and ROI advertisers are seeking. Users are simply too engaged in their social interactions to pay attention to traditional banner ads.
Advertisers clearly need a new platform to capitalize on the social media opportunity.
According to TellAPal founder Faisal Qureshi, "Until now, referral marketing never had the social media ecosystem it needed to become a major online marketing channel." Qureshi adds, "Now that the ecosystem is here, advertisers need an efficient way to be able to launch referral campaigns that drive word of mouth across social media."
As opposed to the much-maligned social advertising models that were not explicitly endorsed and initiated by the users, TellAPal's new system is completely user driven. It enables advertisers to empower their existing customers to recommend their product or service to their friends. Recommendations are made through personalized emails or widgets and are combined with exclusive "friends only" offers. For successful referrals, the referring customer chooses from a variety of rewards that they can keep, donate, or give to a friend.
Using this new platform, advertisers can reach potential customers more effectively, as well as launch entire campaigns with minimal work and pay only for performance.
Sam Bloom, VP of Dallas, TX ad agency Camelot Communications sees clear value for his clients in this model. "Social media requires an advertising model that balances the ROI needs of advertisers with enough social currency and relevance to consumers," Bloom says. "Social media's growth and peer-to-peer nature has all the ingredients for 'referral marketing' to take its place in the online marketing arsenal and become a key online advertising and distribution channel."