“Little Joe never once gave it away Everybody had to pay and pay” — Lou Reed, Walk on the Wild Side The consensus seems to be that social networks have a monetization problem. On this topic, both the leading technology industry blogs and the world’s top news organizations agree. The problem is not that these sites have no revenue. I “guesstimate” that MySpace and Facebook have annual revenue run-rates of approximately $650mm and $450mm respectively – highly reputable numbers. The perceived problem relates directly to revenue per user or page view, as these are two of the most heavily trafficked sites on the […]
Above the Crowd
By Bill Gurley
Archive for the ‘advertising’ Category
Perfect Online Video Advertising Model: Choose Your Advertiser
Many companies and visionaries have pontificated about the future of video ads and different techniques for monetizing online videos. A big part of this is driven by the fact that while YouTube is a huge user success, its a less proven monetization success. On a recent trip to NYC, an idea came up which I can’t get out of my head, and the more I think about it, the more I believe that it is the Holy Grail for the future of online advertising. But before I disclose the big “ah-ha,” a few caveats: 1) No one will ever monetize commodity content well. If the same […]
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