Social Networking Sites Still Figuring Out The Money Thing
from the no-wonder-they-all-sell-out dept
Despite the massive popularity of some social-networking sites, it's well known that they've had a hard time monetizing their page views. In the case of MySpace, the company is trying a different approach. Instead of selling site-wide ads, it's allowing advertisers like Disney to buy sponsored profiles that are separate from the normal user pages. Essentially, it's exploiting the fact that MySpace is perceived to be a haven of tawdry teenage high jinks by offering a way for brands to be present on the site without mixing in with the "bad stuff". Whether this makes any sense, or whether users will want to make friends with these officially sponsored profiles remains doubtful. The other powerhouse in the space is, of course, Facebook, which is well known for wanting a $2 billion buyout. They recently announced a new advertising deal that came with one caveat -- they gave the buyer an equity stake in the company. The company is claiming that this wasn't a quid-pro-quo, and that the deal is more strategic than a mere ad sale, but it certainly sounds a lot like some of the deal making behind the last bubble when offering up an equity stake in exchange for a purchase was a common strategy. Given the troubles these companies are having, maybe these companies are a little too good at moving value to the edge of the network.
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backlash
is a social netorking backlash immenent? havent we seen it already with friendster? isnt socializing suppossed to be socializing and not sitting in front of your computer?
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if i get eyeballs i automatically make money. hmmmm, where and when have i heard that before????
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"if i get eyeballs i automatically make money."
And that's different from techdirt.com, how?
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value of eyeballs and the business model
users will not pay for the MySpace service. NEVER. so yes the business mode needs to be based on generating a critical mass of eyeballs, and finding ways to monetize it. - sponsored profiles - banners - keyword advertising - selling music, tv shows, movies different today from bubble 1.0 is the fact that there are more advertising/sponsorship dollars flowing to the web from non-internet players. and more monitization opportunities (e.g. selling content, video ads) not different crazy, crazy, crazy valuations.. and stupid internet ideas getting money
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Not eyeballs
It's not eyeballs... Every advertiser is in it for one purpose, C2C (Convert 2 Customer)
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There's no argument that MySpace comes out on top as far as getting eyeballs on the sign in page.. and ads on your home page.
Frankly, friendster dropped the ball with not keeping up with traffic demands.. People just don't have patience for slow moving web sites.
When my MySpace log-in page turns into an elaborite full screen Superman advertisement, I have to say that has a lasting impression.
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BillyBob, techdirt makes the lion's share of their money writing custom market analysis for private clients. This web site is a value ad for users and advertisement for companies.
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Did Facebook ever win the "ConnectU" lawsuit, or is that still ongoing?
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have you seen FusnpotPals?
Speaking of social networking sites, have you checked out www.FunspotPals.com? It's modeled on meeting people to share acitivities like diving, skiing, gol, etc. on trips.
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Re: have you seen FusnpotPals?
yeah!the site looks kool...im playing around with it...
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Re: Re: have you seen FusnpotPals?
The FSP.com site (FunspotPals.com) is now into it's "Phase Two" which looks intense! They've basically produced a My Space for sports (essentially).
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Wow. I always thought these sites were making bank. I never thought they would have trouble advertising. I think they already sold out though.
"When my MySpace log-in page turns into an elaborite full screen Superman advertisement, I have to say that has a lasting impression."
This is exactly what I thought. I saw that, and my jaw dropped. They must have made a pretty penny on that deal
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how do social networking site make money withou ad
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