Where is the money in social networking? Murdoch's News Corp is still looking how to start making money out of MySpace. According to News Corp’s chief operating officer, Peter Chernin, advertisers are still not sure how to make money out of promoting their products and services at MySpace. The current issue around MySpace shows that fundamental questions still surround social networking in general. As for Facebook, the mojor rival for Myspace, Microsoft was reported to have approached Mark Zuckerberg about a possible acquisition. Microsoft has already $240m stake in Facebook. The total value of Facebook is reported to be worth around $15bn News Corp claim that MySpace is the most powerful social network with more than 73 million regular users compared to Facebook's 36 million.
9 Where is the money in social networking?8 Where is the money in social networking?Facebook revenue in 2007 was $150 million. This year the projected revenue is between $300 to $350 million. Those who put the $15bn price tag must be dreaming.
7 Where is the money in social networking?Most of my space users are teens - under 21 years old . they are unlikely to go and buy from online stores 6 Where is the money in social networking?It's good to know for sure that the profit and the value of major social networking web sites are over-hyped . 5 Where is the money in social networking?There are many other possibilities of monetizing social networks such as sponsorship: if users know that a certain sponsor helped make certain experience possible, they will remember the name
4 Where is the money in social networking?I guess that blog, news portals have the same of problem as click-thru users don't want to know about relevant ads. 3 Social ads don't workIt's very hard to monetize no-search web sites Many promoters and advertisers are beginning to find out about the ineffectiveness of advertising in social networks. At social networks, people are just hanging out - they are not looking or searching for specific products or services. In fact most users don't want to be redirected to another web site . It's very hard to monetize no-search web sites. Placing ads on Mail , groups and forums will never convert as in search engines. 2 Where is the money in social networking?Even if may users view and click on your ads at MySpace, it won't convert as in other websites such LinkedIn. Besides most of ads in MySpace look like spam 1 Where is the money in social networking?The last thing teens can do at MySpace is to click on ads. MySpace users are not business owners or professionals. They are teens who are only there to pass time . MySpace has to add extra features relating to business networking, employment and education. |
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Most people forgot that social networks are not designed to make money . Search engines are the mean machines for money making.