Fri, Feb 6th 2009 12:41pm
Facebook celebrated its fifth birthday this week, and amid all the navel-gazing about what that means for the internet, one big question still hangs over the site: how will it monetize its popularity? This is an issue that continues to dog the social-networking space, as Om Malik points out that MySpace is struggling to generate revenues as well. These sites' massive amount of traffic and visitors, and the huge amount of time spent there, have traditionally not automatically equated to big advertising revenue, and there's nothing to suggest that's going to change soon, particularly given the slowdown in ad spending. If these sites are depending on advertising for revenues, they've got to come up with something more compelling than simple banner ads, which aren't delivering decent CPM or clickthroughs. While sites like Facebook and MySpace have plenty of life left in them, at some point, they're going to have to deliver an effective way to generate significant revenues.
If you liked this post, you may also be interested in...
- Journalists Blaming Facebook For Decline Is Just As Tiresome As When They Blamed Craigslist & Google
- Techdirt Podcast Episode 91: Is Facebook Moderation A Necessary Evil?
- CBS Announces New Ad-Free More-Expensive Streaming Service...That Includes Ads
- Ted Cruz Campaign Infringed On Copyright, But Will Probably Be Treated With Kid Gloves Just Because
- NBC's 'Most Live Olympics Ever' Will Have A One Hour Broadcast Delay For The Opening Ceremony