Social networking sites are doing wonders for third-party businesses, allowing them to market and interact with customers as never before. And many application developers are generating serious revenue through games hosted on sites such as Facebook. But the social networks themselves are not making nearly enough money from this activity.
That’s the message from a new report entitled “Follow the Money: An Analysis of Business Strategies and Dealmaking in Social Media”. Authored by Lauren Rich Fine, a former Merrill Lynch analyst who is now director of research for ContentNext Media, the report argues that social networking sites, and Facebook in particular, need to get much more aggressive about monetising their traffic. Read more
The incessant media focus on Twitter (we’re guilty, too), coupled with a parade of celebrity endorsers (from Oprah to Lance) has excited enormous public interest in the micro-blogging service.
Eager to see what all the fuss is about, millions of people around the world are signing up to send their first “tweets.” Unique users of Twitter grew by more than 100 per cent in March, and are now estimated at 14m.
But it turns out most of those users are determining that the fuss isn’t about all that much, after all. A full 60 per cent of new Twitter users fail to tweet again the following month, according to Nielsen vice president of primary research David Martin. Read more
MySpace is moving to the neighbourhood.
The social networking giant today announced a deal to emphasise searches of local restaurants and the like, with reviews of those businesses by a user’s friends getting prominent billing. Read more