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There is money in social networks - at least if you’re Facebook or MySpace

By Daniel, October 26th, 2009

According to a recent comScore report, social networking sites now account for more than 21.2 percent of all US online display advertisements. And out of that chunk, Facebook and MySpace account for more than 80%. On one hand it positively underlines that where people spend time, money will eventually follow. On the other hand, it also underlines the very high dominance of a few successful sites/services/communities grabbing an extraordinary high portion of the total revenue.

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This entry was posted on Monday, October 26th, 2009 at 6:08 pm and is filed under Creandum. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “There is money in social networks - at least if you’re Facebook or MySpace”

  1. Antti Vilpponen Says:
    October 30th, 2009 at 8:55 am

    Daniel, a very good point. However, due to the nature of the social networks per visit each visitor is bound visit more pages thus increasing the site pageviews. From my experience, if you take this into account and add the display advertisement stats to it, the average CTRs will go down from the very lows that they already are in.

    Would be interesting to hear what your thoughts are on other means of advertisement and marketing in these networks? Do VCs consider display/banner advertising to be the king in the near future as well?

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