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Monetising Social Networks

June 26th, 2006 · 1 Comment

Robert Young writes:

The fundamental problem that social networks face when trying to monetize through an advertising-driven business model is the lack of trust. To be more explicit, while brand advertisers have historically trusted people as consumers, they do not trust them in the new role of producer (e.g. uncontrollable content). Likewise, people who are armed with the power of interactivity are also demonstrating that they are increasingly distrustful of brand advertisers (e.g. ad-skipping).

In many ways, social networks today, at their current stage of evolution, are much like the currencies of underdeveloped nations or countries that are politically unstable. In such circumstances, governments must do all they can to create and engender trust among its nations constituents and institutions. After all, what is money without the peoples trust its just a devalued piece of worthless paper.

Tags: Software

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