For all the hype and hoopla over Facebook in the last year, the overwhelming share of traffic still goes to Fox Interactive Media’s MySpace, according to the latest breakdown of social networks by Hitwise. Fox Interactive Media continues to struggle to make the social model work for advertisers, however, as the relative ineffectiveness of advertising in these spaces becomes conventional wisdom among buyers. There is loads of room for novel ad and content packaging that makes social media make better sense to ad buyers. eMarketer estimates that about $1.56 billion in ad spending will go into these venues in 2008, up from $920 million in 2007.

The Social Centers

Chart: Top 10 U.S. Social Media Sites and Online Communities (by market share of visits)

1. MySpace        41.50%
2. Facebook        8.29%
3. YouTube        7.39%
4. Craig’s List        2.81%
5. Yahoo! Answers    .99%
6. Yahoo! Groups    .94%
7. MySpace TV    .93%
8. Yahoo! member directory        .78%
9. myYearbook    .73%
10. Bebo        .67%

Source: Hitwise

While the much hyped and poor Quarterlife series crashed and burned in its attempt to jump from Webisodic series to TV prime time, another project has become a real viral online hit. The Guild is a ten-part sitcom series by a gamer and indie filmmaker Felicia Day. The show, which is distributed on YouTube and at www.watchtheguild.com, is a clever look at online gamers but told in a way that appeals to a wider audience. The three-minute episodes are funded entirely by PayPal donations by fans, more than half of which are women. So there, Hollywood digital wannabes. The Guild is a superb example of excellent Web-only content organically grown from the makers’ experience, not manufactured by middle-aged producers trying to look as if they understand digital youth. With over 6 million “hits” (who uses that term anymore?) to its video episodes, this is a genuine online video phenom worth watching both as a model for the platform and as a funny show.

Citing new research on its own base of 30 million social media users, ad services provider Lotame says that ad campaigns into user-generated content require much higher frequency caps in order to capture these users when they are ready to pay attention. Frequent visitors to blogs and network profile pages are so highly engaged in their posting and mailing activities during their first session they pay no attention to ads. During later sessions in a 24-hour cycle these same users are in a more passive mode that can respond well to the message. The company suggests media planners try to target the core influencers in a given social vertical but also hit them repeatedly, sometimes up to 17 times, with an ad.

As part of the Time Inc. Digital Showcase line-up in Manhattan last week, CNNMoney.com flashed its fat video wallet by showing the room full of press only just what Broadband video has done for their site, both in the past and for the future. According to Jonathan Shar, general manager/SVP for CNNMoney.com, the site, which holds content for Fortune, Money and Fortune Small Business magazines, had over 19 million video streams for 2007, a number that is basically unparalleled in the online business/financial news space. “Video has easily become the main feature of our site,” Shar noted, “and it will only grow in the next two years.”

Most interestingly, Shar informed us that instead of just piling video responsibilities on top of the current editorial staffs’ shoulders, they hired a full video staff of twelve (yes, TWELVE) editors and producers, including Caleb Silver, who is executive producer for the video channel. While the staff is huge and thought to only exist in budget fantasy lands like Time Inc., so is the video undertaking, which includes have an original video on each page so that users can read articles while watching the content-complimentary video at the same time.

The recipe site AllRecipes.com is leveraging its user logs wisely to promote the brand with press and media buyers alike in its Monthly Measure look at audience trends. Available in an attractive PDF format here, the internal metric shows how recession and tax time hit food hunters in April. Keyword searches on perennial chart-topper “chicken,” for instance, grew 140% year-over-year, while “pasta” was up 210%, and up from #9 to #3. Meanwhile, “ham,” “carrot cake” and “sugar cookies” all slipped off visitors plates and declined. While we are not sure what we ourselves would do with such knowledge, it is a good sign that content providers are recognizing the market and promotional value in their own data. Used wisely, publishers can elevate their brand by becoming a visible resource to press and marketers.

Citing new research on its own base of 30 million social media users, ad services provider Lotame says that ad campaigns into user-generated content require much higher frequency caps in order to capture these users when they are ready to pay attention. Frequent visitors to blogs and network profile pages are so highly engaged in their posting and mailing activities during their first session they pay no attention to ads. During later sessions in a 24-hour cycle these same users are in a more passive mode that can respond well to the message. The company suggests media planners try to target the core influencers in a given social vertical but also hit them repeatedly, sometimes up to 17 times, with an ad.