Social Sites Come Up Short
After announcing numbers that failed to reach expectations last week, Google executives said that the firm was having a difficult time creating revenue from ads served on social networks and figuring out the right ad format for YouTube.
Microsoft which owns 1.6% of Facebook and has a long-term deal to sell advertising on the site, may be losing money from this deal as well, reports the Wall Street Journal. This concern is significant for the search engine/technology firm as it looks to acquire Yahoo and have access to its 500 million users worldwide.
The slower growth of online revenue from video content and social networks may also be attributed to the escalating economic issue globally.
The report continued to say that giants such as Google and Microsoft have not given up yet though with the estimation of ad spend on social networking and video increasing in the U.S. about 70% this year to $1.56 billion; it will decelerate to a 29% increase to $2.02 billion 2009 according to eMarketer Inc.
Google CEO Eric Schmidt aid to WSJ in an interview that “It’s taken longer than I thought for us to find the right combinations (of ad formats) but it will ultimately be very, very successful for [Google] and the industry.”
Reader Comments.
Social sites are not yet an ideal environment for online advertising. The ads are many times a distraction and run counter interference with the content and connections..
- Pingback from UnderCurrent » Blog Archive » This Internet Thing
I believe that the Social Network traffic is way overvalued at this time and as advertisers keep pulling their marketing dollars away from Social Media, Facebook and others will need to come up with rates that could spell out PROFIT instead of LOSS.
Leave a Comment
Article Sponsor
More News
Spotlight
Trust Me – I’m a Professional … SEOADOTAS — At WebMetro we typically provide SEO Action Plans as part of campaigns. As the name implies, an SEO [...] more...
Latest News
- Readers weigh in on ATT, ad networks and the iPhone July 2nd 2009 ADOTAS — In our weekly poll, readers overwhelmingly said that [...] more »
- Hiring, promotions, location, partnerships and product news July 2nd 2009 ADOTAS — Internet Oldtimers Foundation, Jumptap, eXelate, Kampyle, The Digital [...] more »
- OPA large ad units unfurl across the web July 1st 2009 ADOTAS — The Online Publishers Association said a group of [...] more »
- Email spam in June worst since 2007 July 1st 2009 ADOTAS — MessageLabs Intelligence released its numbers for June, and [...] more »
- Joost becomes YouTube roadkill, starts layoffs July 1st 2009 ADOTAS — Despite reworking its technology to work in a [...] more »
- Ad networks, not websites, choked on Michael Jackson news July 1st 2009 ADOTAS — The news of the pop star’s death saw [...] more »
- StrongMail doubling down on social media, buys PopularMedia July 1st 2009 ADOTAS — StrongMail has announced that it acquired PopularMedia, a [...] more »
-
Loading ...
Features
- Automakers Need to Become Better Conversationalists July 2nd 2009
- Affiliates can win in the media buy game July 2nd 2009
- Crowd-Sourced Ads: A Measured Response June 28th 2009
- Is the government coming for you? June 28th 2009
- Customer Loyalty: How to Earn It June 25th 2009
Reader Favorites
Layoff Tracker
- AOL - 700
- Apple - 50
- Clear Channel - 2,800 total (1,000 currently)
- Google - 340
- IBM - more than 7,800
- Joost - about 90
- MySpace - in June, about 720
- World Avenue - 30 percent of workforce
- Yahoo - 2,220 total, about 700 currently
- Zango - closes, about 90, in addition to earlier layoffs
Classifieds
Recent Comments
- Josette Davids: Great article and an amazing time was had by all at this event. I'm an
- Mike Poserina: There is also a tragic flaw rumored in Bing's ad placement engine. When resolved,
- Andy: Erin, Never mind the commenters who can only see the negative side of things. I thank you
- pkohler: We've also noticed that ads frequently adversely affects the performance of a Web page. As
