Sunday 27 June 2010

Last week’s ‘yin & yang’ of social networking

yin and yangOn one side there is the immensely successful Facebook, with rapidly increasing ad revenues – and on the other side there is Bebo, sold by AOL for a mere $10m (USD) whereas it was purchased for $850m two years ago.  Bebo was the pioneer of social networking in many respects, such as deep ad integration with video, widgets and engagement marketing. I’m wondering what plans the hopeful buyers have to get the balance sheet back on track – which in the name of healthy competition I hope they do? Whatever they may decide to do, first and foremost they will need to win over the audience. As before a social networking site can be commercialised it needs to reach critical mass.
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