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Will Monetization Models for Social Media Come?

Posted on: April 3rd, 2009 | 4 Comments

Dave Naylor is never shy to share his opinion on matters and this interview with WebProNews is no exception. As evidenced by several of our videos from SES New York, social media was a hot topic. One area in particular that raised a lot of discussion was monetization of social sites.

According to comScore, YouTube is the second largest search engine next to Google. It however, does not have a solid monetization model. Dave says YouTube users don’t care what’s going on around them. They simply want to watch a video. YouTube users turn advertisements away much like they do on television, by either flipping to another channel or leaving the room until their program comes back on.

Twitter is a whole different story altogether. Look at all the applications it provides such as TweetBerry, TweetDeck, and our very own Twellow. Dave then raises the following question: what if Twitter would start charging for their usage? How would that change your business strategies on Twitter?

Twitter recently announced that Pro accounts are coming this year but has yet to disclose what they consist of.

Moving right along to Facebook. As discussed in our interview with Tim Kendall, contextual advertising on Facebook is based on the freely submitted data Facebook users provide. On the contrary, Google and the other search engines base their advertising on the searcher’s past history.

Facebook’s model is much more accurate than the search engine’s technique. Most users conduct many searches at work, which does not reflect their actual behavior. Facebook uses the information users readily give to them as part of their preferences.

On a final note, Dave points out that Google needs to incorporate a “business account” for Google accounts since sometimes many people are logged into one person’s account. He suggests giving the account holder the ability to choose who can have access to what.

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4 Comments on “Will Monetization Models for Social Media Come?”

  1. Great article. A valid and interesting point about adertising on youtube. Thinking about it I can’t remember ever clicking on a add whilst on youtube.

  2. After reading the article, I just feel that I need more info. Could you suggest some resources please?

  3. Karl -

    Out of curiosity, what were your upload problems with YouTube? Time limits or file formats?

  4. I have to agree, Youtube should have a premium service business owners could purchase to upload video’s that gives us the ability to monetize our content. And upload video easier. I had to switch to Veoh because of upload problems.
    Also a premium mail service businesses could us that gives us the ability to use our own domain name but with the technology would be great.

    Karl
    http:www.blakpagesusaonline.com

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