IDC Says Advertisers Still Don’t Like Social Networks |
| Published: August 29, 2007, 3:21 pm |
| Tags: social networking, revenue sharing |
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A report released by the IDC suggests that popular social networks aren’t necessarily on the right track to monetization. The IDC states that online social networks will most likely require a mix of business models in order to financially successful, including advertising, e-commerce, and subscription services. However, advertising is the only model that can scale alongside growing social networks, according to the IDC. What the company found is that advertisers aren’t spending as much money as they could on social networks due to the inability to control the association of their brands with the unpredictable nature of content found on social networks. This means that sites like MySpace and Facebook aren’t reaching their advertising potential. This issue of advertisers being hesitant to market on social networks is ongoing, but is continually being overcome. We’ve witnessed this with increasing options for advertising on video-sharing sites like [ Full article ] |
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