Working on the business plan for your new social networking site? Better start coming up with creative ways of monetizing it. A couple weeks ago we posted that Web 2.0 companies aren't generating the high revenues one would expect given the funding they've recieved. And yesterday Google's top ad man, Penry Price, admitted that they haven't been effective in making money off sites like MySpace: "There's no answer yet how to monetize some of the places we're working today." (via Valleywag)
Obviously traditional advertising has been the go-to moneymaker so far for these sorts of sites, but given the weak profits, advertisers are going to start trying out new things. Do you guys have any ideas for better ways to monetize a start-up Web 2.0 site?
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I would tell you but I've have to kill you... or be gifted a significant share in Google. But seriously, maybe Google can't make money off contextual ads on social networks because: a) the people on these sites have no money and thus aren't shopping; or b) the people on these networks are there to... uh socialize.
If you put an ad on everything, no matter how targeted, pretty soon you get consumers who are oblivious to ads.
My suggestion would be to make it new and exciting. People see contextual ads when they go to search engines and that's what they want. Give the people on social networks either one of two things: 1) ads for things that help them socialize better; or 2) a reason for clicking (dare I say sex, money, or rock and roll). Maybe these free loading MySpace users need something else free in order to part with their hard earned allowance.
—brentbutler
18:26, June 4th, 2008
Utilizing social media optimization and handing out promotional gear with the Company's website address will help bolster awareness, but seriously, do we really need another 2.0 site?
One company that was developing a social networking site used a very interesting marketing approach. They handed out promotional stamps at bars and clubs, (you know when you pay a cover and get a stamp), and so stamps would be on these individuals hands, and pique curiousity.
—earndt
14:29, June 4th, 2008
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