Robert Young has a great post on the impact of social media on new advertising models. He writes :
.. As such, successful commercial exploitation of this new medium requires the development of new business/advertising models.3 This has been true for every other new medium that has been adopted at large scale throughout history. Yet, unlike mass media before it, social media introduces the very unique element of the previously passive audience becoming both producers and distributors of media. From a marketing perspective, this means that the people themselves will necessarily have to become an integral part of the brand communication strategies and processes."
I can't agree more with Robert on this . I personally think most of our current models still use the traditional advertising thinking - "Interruption". It has moved from "interruption of millions" to "interruption of one"! Sure, currently it is a little better targeted than the traditional TV & print models of the past but the future models need to get a lot more collaborative, engaging and co-creating with social media. It has to be a lot more deep, sensitive, emotional and intense. The model of the future has to build a dialogue rather than inform, grow & learn along with interested customers and has to get them to buy-in rather than make them buy!
It's not about cost per click(CPC) but cost per conversation(CPC)!