Social networking and social media sites became very popular once people realized how great they work for staying connected with friends and family and of course networking. The basic uses of social media sites have also expanded to include internet marketing efforts, searching for information, creating a huge stream of constant traffic and sign-up conversions. Because these sites are generating an abundance of traffic, they continue to attract large investors, making the financial objective even more important. How can these sites produce revenue from their traffic?
Although MySpace’s buzz has quieted down, it still has substantial traffic mainly from a younger audience. MySpace offers its users the option to really personalize their pages, which makes it attractive to teens that naturally want to express themselves and flaunt their individuality. MySpace generates revenue solely through advertising and does not pass any costs to its users proving to be an attractive formula. In 2006, when MySpace was named the most popular networking site, Google and MySpace reached a $900 million dollar deal where MySpace’s search functionality would be powered by Google’s search engine and advertising models. Additional revenue comes from media companies like YouTube or profile template and design layout companies that advertise on MySpace.
If you have moved on from MySpace, you probably call Facebook home for your social networking needs. Facebook has had no problem attracting investors, but their financial department is currently working towards viable ways for generating revenue. Facebook currently has a sponsored link space located on the right of your profile page under your notifications. According to profile information that has been disclosed by the user, relevant advertisements appear in this space. The problem with this kind of advertising is that although it might be interesting to the user and his/her friends, the user did not find the ad through a search query, which means it’s reaching the user at the wrong time decreasing the likelihood of a conversion.
Facebook has applications that are sent from friend to friend as gifts and other similar novelties. The applications have proven to be popular and could generate income from the sale of these gifts if kept at a low price; perhaps $1 each. The site has even attracted a brand like Britney Spears to launch gifts proving that these items are popular and could be bankable items. To take advantage of their search functionality, another good idea could be adding a sponsored page section to the top of page search results. With the introduction of Facebook fan pages for just about anything from celebrities, corporations, to hobbies and interests, a page could see the opportunity in a sponsored search link that could attract new fans and increase brand and cause awareness.
Twitter has done a great job at branding. Twitter is everywhere, and everyone is tweeting! The micro-blogging site has attracted major celebrities, corporations, and has become one of the most prominent sites for communication. Even respectable media outlets like CNN use Twitter as a practical way to syndicate their news coverage with its audience. Even with great branding, many feel the company will not last because of its lack of revenue generation.
One thing to observe is that Twitter’s search potential is nothing to sneeze at. There is nothing more powerful than finding live relevant information as it is tweeted. Instead of waiting for information to be crawled and indexed, the information is made available as soon as someone clicks the update button. If Twitter could apply a pay per click or sponsored link section for search results, companies with verified pages could attract traffic and generate leads. Currently they charge for verified accounts but could charge more to make the verified account a preferred search result as long as their update is less than 24 hours old.
New advertisement potential could include sponsored trending topics. Twitter trending topics have become a good indicator of what people are interested in at the moment. Adding a sponsored trending topic could attract major traffic to a site that wants to launch or promote a product or event. As trending topics become more credible as a forum of information, a company could take advantage of Twitter’s brand power to increase their own brand awareness.
Internet marketing experts recognize the amount of time spent on social sites and how they influence users. The opportunity for visibility is massive which means these sites have great earning potential for internet advertising space. To guarantee their viability on the internet a social site needs to execute the right plan for increased earnings. What are some other ways these sites could boost their profits? Do you have some suggestions of your own? Feel free to join our fan page on Facebook and submit your comments and ideas.
How Can Social Networking Sites Monetize Their Traffic?
Although MySpace’s buzz has quieted down, it still has substantial traffic mainly from a younger audience. MySpace offers its users the option to really personalize their pages, which makes it attractive to teens that naturally want to express themselves and flaunt their individuality. MySpace generates revenue solely through advertising and does not pass any costs to its users proving to be an attractive formula. In 2006, when MySpace was named the most popular networking site, Google and MySpace reached a $900 million dollar deal where MySpace’s search functionality would be powered by Google’s search engine and advertising models. Additional revenue comes from media companies like YouTube or profile template and design layout companies that advertise on MySpace.
If you have moved on from MySpace, you probably call Facebook home for your social networking needs. Facebook has had no problem attracting investors, but their financial department is currently working towards viable ways for generating revenue. Facebook currently has a sponsored link space located on the right of your profile page under your notifications. According to profile information that has been disclosed by the user, relevant advertisements appear in this space. The problem with this kind of advertising is that although it might be interesting to the user and his/her friends, the user did not find the ad through a search query, which means it’s reaching the user at the wrong time decreasing the likelihood of a conversion.
Facebook has applications that are sent from friend to friend as gifts and other similar novelties. The applications have proven to be popular and could generate income from the sale of these gifts if kept at a low price; perhaps $1 each. The site has even attracted a brand like Britney Spears to launch gifts proving that these items are popular and could be bankable items. To take advantage of their search functionality, another good idea could be adding a sponsored page section to the top of page search results. With the introduction of Facebook fan pages for just about anything from celebrities, corporations, to hobbies and interests, a page could see the opportunity in a sponsored search link that could attract new fans and increase brand and cause awareness.
Twitter has done a great job at branding. Twitter is everywhere, and everyone is tweeting! The micro-blogging site has attracted major celebrities, corporations, and has become one of the most prominent sites for communication. Even respectable media outlets like CNN use Twitter as a practical way to syndicate their news coverage with its audience. Even with great branding, many feel the company will not last because of its lack of revenue generation.
One thing to observe is that Twitter’s search potential is nothing to sneeze at. There is nothing more powerful than finding live relevant information as it is tweeted. Instead of waiting for information to be crawled and indexed, the information is made available as soon as someone clicks the update button. If Twitter could apply a pay per click or sponsored link section for search results, companies with verified pages could attract traffic and generate leads. Currently they charge for verified accounts but could charge more to make the verified account a preferred search result as long as their update is less than 24 hours old.
New advertisement potential could include sponsored trending topics. Twitter trending topics have become a good indicator of what people are interested in at the moment. Adding a sponsored trending topic could attract major traffic to a site that wants to launch or promote a product or event. As trending topics become more credible as a forum of information, a company could take advantage of Twitter’s brand power to increase their own brand awareness.
Internet marketing experts recognize the amount of time spent on social sites and how they influence users. The opportunity for visibility is massive which means these sites have great earning potential for internet advertising space. To guarantee their viability on the internet a social site needs to execute the right plan for increased earnings. What are some other ways these sites could boost their profits? Do you have some suggestions of your own? Feel free to join our fan page on Facebook and submit your comments and ideas.