Sunday, December 14, 2008

Digital Domain - Advertisers Face Hurdles on Social Networking Sites - NYTimes.com

Read the full article for some anti-social advertising dynamics

All Web sites that rely on ads struggle to a greater or lesser extent to convert traffic, even high traffic, into meaningful revenue. Ads that run on Google and other search engines are a profitable exception because their visitors are often in a buying mood. Other kinds of sites, however, can’t deliver similar visitors to advertisers. Google’s own YouTube, which relies heavily, like Facebook, on user-generated content, remains a costly experiment in the high-traffic, low-revenue ad business.

Financial data would show the current state of Facebook’s advertising, but none are available. Facebook is privately held and a spokesman told me that it does not disclose revenue or any information about its ad sales.

Digital Domain - Advertisers Face Hurdles on Social Networking Sites - NYTimes.com

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