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Social Networking - Leave It To The Pros
By Daya Baran at June 05, 2008 0 Comments| Yet another social network is shutting down. This time is it Verizon’s social network. The social network which let users write blogs, post photos, and discuss in forums, will close June 16, 2008. The existing social network on the Verizon website will be moved over to the Verizon page on Facebook. Verizon jumped into social networking like many other companies, thinking it would be easy. They even branded it as “Join The Conversation” however they soon realized that branded social network wasn’t worth the effort and they are moving to where the conversation is.
In January, Conde Nast folded its social network called Flip into a Facebook app less than a year after launching. Flip was a social network for teen girls. Conde’s strategy was to get teen girls to migrate to Flip from Facebook and soon Conde discovered that they did not stand a chance said Sarah Chubb, its president. “If you’re a teenage girl, all your friends are already there. And every friend you might want to have but haven’t met yet is already there,” she says. “What is possibly going to make you go somewhere else?” When it comes to monetization of social networks even the pros are having a hard time. How hard you ask - MySpace and all of the other FIM properties say saw Q3 revenue drop to $210 million from $233 million in Q2. This is despite experiencing strong growth. Also, about 30 percent of MySpace’s revenue comes from a 3-year guaranteed deal from Google, which Google is losing money on. We have some words of wisdom from Sergey. Source: Google Conference Call - Sergey Brin Speaking |
 We have had a challenge … with social networking inventory as a whole and some of the monetization work we were doing there didn’t pan.
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Labels: Facebook, MySpace, Online Advertising, social networks
