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It’s no secret that social networks have had a difficult time integrating advertising that has a bang for its buck. IDC has released some data showing what social networks - and advertisers - are faced with.

Only 57% of social network users have clicked on an ad in the last year versus 79% of all users in the rest of the web.

When it comes to purchasing, only 11% of social network users will actually make one compared to 23% of the rest of the internet.

“The thinking has been that the popularity of SNS will attract a big audience and generate a lot of traffic, which in turn will produce enormous amounts of user-generated content (UGC) and therefore advertising inventory – without any expenses for editorial staff or content distribution deals,” said Karsten Weide, program director, Digital Marketplace: Media and Advertising. “All of the above has proven true – except that almost invariably, SNS have had a hard time selling this inventory.”

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Advertising network AdBrite is now offering CPC (click per cost) for banner ads. Customers were already able to bid via CPC on search placements and text ads. Previously, graphical ads were restricted to CPM (cost per impression).

“AdBrite is committed to our advertisers’ success,” said AdBrite CEO, Ignacio Fanlo. “Allowing them to pay for performance makes sense. More than 90 million consumers visit AdBrite’s sites every month, and our new CPC auction provides an effective and low-risk way for advertisers to engage them.”

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Google AdWords is beta testing a new AdWords interface. The beta test includes a small group of U.S. advertisers. If your account is included in the test, you should see a notification upon signing up to the account.

You can also request to be included in the beta test by signing up here.

Note that this beta test is for the interface and doesn’t change how AdWords campaigns work (i.e. bidding, Quality Score, etc.). They’re looking to improve the way users navigate their campaigns and edit campaigns across multiple ad groups.

Have you been included in the beta test? Let us know your first impressions by leaving a comment.

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Yahoo!’s mobile search product, oneSearch, has been selected by T-mobile for Web2go, their new customizable mobile web portal.

Yahoo’s oneSearch is designed to provide answers. For example, if you query a sports team, the results will give you scores, schedules, team profiles and the team’s web site.

David Ko, senior vice president, Connected Life, Yahoo! Inc. had this to say: “With our innovative products and global partnerships we are a leader in mobile search and are incredibly excited to bring Yahoo! oneSearch to more and more users every day. Together, T-Mobile and Yahoo! are providing users with compelling mobile services, while creating unique opportunities for advertisers to reach the rapidly growing audience of mobile consumers.”

In September, Yahoo! announced that oneSearch had been set as default on AT&T’s mobile web portal. In August, a shortcut to oneSearch was launched on select Nokia devices.

Real estate search site Trulia has partnered with Placecast for audience targeting and dynamic messaging. The goal is to improve the relevancy of the ads appearing on their site.

Placecast will use its proprietary targeting algorithms to generate ads based on the real estate locations in which a user expresses interest. The ads will also take into account demographic and psychographic data points.

“Turning locations into audiences is one of the biggest challenges facing advertisers today,” said Sean Black, Vice President of Sales at Trulia. “Trulia presents advertisers with multiple opportunities to serve very targeted ads based on location and consumers search behavior. Placecast is a cutting edge media company and we are excited to be working with them and their clients to build and deliver successful campaigns.”

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While some sectors in the economy are struggling, 24/7 Real Media brings some much needed good news. They are the fastest growing top ten ad network in the six months ending October 2008, according to the comScore Media Metrix report.

24/7 grew by 36% and now reaches 135 million unique users. That’s 71% of U.S. internet users.

“We will continue to diversify our publisher network to provide advertisers with unmatched targeting and reach, to accomplish their specific program goals and experience increased ROI for every campaign,” said Ari Bluman, president of North American sales and operations for 24/7 Real Media, Inc. “As a result of our robust targeting options and tremendous reach, we have one of the highest performing networks available.”

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AOL’s ad network, Platform-A, is going on tour. The 5-city event begins in New York City on November 17th at the American Museum of Natural History. The next stop will be Atlanta on November 20.

The tour will break for the holidays before hitting Chicago, Los Angeles, and San Francisco in 2009.

“AOL has one of the largest, most diverse and most engaged audiences on the Web, and combined with Platform-A’s industry-leading technologies, we can offer advertisers a unique combination of scale, integrated branding, and advanced targeting capabilities to enable them to deliver their branding messages in an effective, engaging and highly efficient way,” said Platform-A President Lynda Clarizio. “At a time when companies make sure that every penny spent on advertising counts, AOL delivers quality content and engaged consumers and Platform-A connects marketers to this audience to drive superior results.”

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It’s easy to pick on Microsoft. It’s practically a national pastime at this point. So when they announced their Cashback program to help grow Live Search, the snears came fast and furious.

“You have to pay people to search?” they said.

Turn your laughter into claps, people. It turns out that Cashback is working. Microsoft is seeing positive results on three goals it said it would report. They are:

• Number of offers in the system
• Advertiser return on investment (ROI)
• Percentage of commercial search queries as measured by comScore

There’s been a 30% increase in the number of products offered via Cashback. 4.5 million unique users per month are generating 68 million commercial queries. eBay has seen an increase of 50% on their ROI.

“We believe this early traction speaks to the differentiated and unique value proposition of Microsoft Live Search cashback for both consumers and advertisers, especially in these tough economic times,” said Brad Goldberg, general manager of Microsoft Live Search.

Is it really any surprise that incentives work? No. Have you ever been listening to the radio and they’re having a $1,000 giveaway? You have to be listening at the right times to call in.

Incentives are nothing new. Microsoft was smart to implement them into Live Search. People don’t necessarily use Google because it’s any better but because it’s familiar. Live Search needs a way to get people searching, and Cashback is working to help accomplish those goals.

That may be why Microsoft is expanding Cashback by partnering with shopping cart providers Miva Merchant, Early Impact Inc. (ProductCart) and 3DCart. Through the agreement, merchants who use the shopping carts are eligible for Cashback.

Microsoft has struck a deal with Sun Microsystems to have the MSN toolbar downloaded with Java Runtime Environment (JRE). The agreement will give Internet Explorer users in the United States the option of downloading the toolbar when they download JRE. The toolbar offers access to Live Search features, the MSN network, Windows Live Hotmail and Windows Live Messenger.

“This agreement with Sun Microsystems is another important milestone in our strategy to secure broad-scale distribution for our search offering, enabling millions more people to experience the benefits of Live Search,” said Yusuf Mehdi, senior vice president of the Online Audience Business at Microsoft. “With the vast array of Java software-based Web applications that are downloaded every month, this deal will expose Live Search to millions more Internet users and drive increased volume for our search advertisers.”

Earlier this year, Microsoft reached a deal with HP to have the toolbar shipped on 2009 PCs.

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President-elect Barack Obama ran on a technology platform that included creating a new cabinet-level position of Chief Technology Officer (CTO). Many names have been thrown around as possibilities with the most prevalent of them all being Google CEO Eric Schmidt.

But Schmidt says that’s not going to happen. He’s happy at Google and he has no plans to go anywhere. He does intend to remain an advisor to Obama.

This is good news since Google likely needs Schmidt to stay put right now. Search advertisers, like many other companies, are bracing to see just how big of a hit they’ll take during the tough economy.

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