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Even Google has failed to extend its golden touch to social-networking sites. In 2006 Google paid MySpace $900 million to place ads on its pages. The search giant also operates its own social network, Orkut, which has been growing, especially outside the US. But in a February call with financial analysts, Google cofounder Sergey Brin conceded that the investments “didn’t pan out as well as we had hoped…. I don’t think we have the killer best way to advertise and monetize the social networks yet.”

“People clearly, especially on the social networks, [are] not particularly interested in clicking on the ads,” says Mr. Brooks, who as editor of socialnetworkingwatch.com has followed the online industry for a decade. “Advertising needs to evolve, and social networks are forcing this change. People are really tired of being assaulted [by ads], but they still love to buy.”

As users share personal information within their networks, companies have an opportunity to capture and employ this data for targeted marketing. Social networks are building huge databases about where users go and the people they connect with, says Fred Stutzman, a doctoral candidate at the University of North Carolina who studies social networks.

Sometimes gritty and often silly, MyYearbook.com is a popular social networking forum for teens who want to flirt, post poetry and compete in photo and video "battles." They vie to be voted "best looking" and to display the "best tattoo or piercing." This uninhibited site--subjects cover everything from fashion to incest--attracts eyeballs.

MyYearbook had 4.5 million unique visitors in June, a 36% increase in a year, says ComScore (nasdaq: SCOR - news - people ). The number of MyYearbook pages viewed that month climbed fivefold from the year before, to 1.3 billion. Piczo, a similar teen site, had 1.4 million unique visitors and 81 million page views.

MyYearbook, created in 2005, had very little advertising until last year. Now, with marketers interested in tapping into the unguarded gabfest, MyYearbook's founders--siblings Geoffrey, David and Catherine Cook--want to exploit the conversations without turning users off.

For example, miniDV cameras are not only among the new tools of self-expression, but the very act of creating personal videos with friends and creating events and key themes to shoot have become key aspects of entertainment in and of itself. To this generation, playing music via your cell phone, and movies and TV shows via your iPod are a given. Emailing is considered too old-school by many, whereas texting is outpacing cell phone calls. These things also go hand-in-hand with changes in online shopping patterns, top website preferences, communication and blogging patterns, and new habits for using social networks—not to mention the tremendous changes in preferred social networks and profile page usage patterns in general. These things are changing the paradigm of how the businesses of entertainment, communication, retail, marketing, advertising, and branding have been done in the past.

Unfortunately, as more companies pour big money into expanding their new media marketing components, as many people have discovered, the Field of Dreams theory (“if we build it, they will come”) certainly doesn’t apply when it comes to reaching savvy youth today. Popping up a site (or social network for that matter) no matter how cool it is means nothing if you can’t reach the market it’s intended for. This Report, therefore, also includes a great deal about how young people find out about new websites, communicate with others, and other forms of grassroots networking.

Overall, the Digital Lifestyle Youth Culture Profile Report 2008 not only reveals traits by target demographics, but also the growing generation gap occurring even within this generation.