All About Social Networking Sites

If you're so busy being poked or viewing your friends' profiles, do you have the time or the inclination to click on an ad? The answer - and there is no definitive one yet, alas-lies at the heart of the debate over the viability of fast-growing social networking sites. The business model of most social networks is a no-bariner: server up relevant and advertising to a captive user base(which, in ad advertiser's ultimate dream, offers information on intimate individual likes and dislikes). That's why online research firm, e-marketer's, experts global ad spends on such sites to nearly double to $2.1 billion this year. The challenge, however, lies in not upsetting users in what is considered a very personal space.

Late last year, Face book had a offer an opt-out option to its users when all hell broke loose over its Beacon programme, which shared details of a user's purchases online(from external websites) to relevant Facebook friends. There are others issues as well;recent data indicates that US audiences are spending less time on such sites, and in fact resent advertising. In India too, while social sites generate high page views, advertising is priced lower than niche sites-- because the response (or clicks) is lower.

This is not to suggest the space isn't rocking; there are an estimated 100 million users on social sites and its growing fast. Networking is second nature. They have always been great networks in their neighborhoods, colleges, communities and now they have taken to it in its digital format. Google's orkut is the largest such site by far, in terms of users(7.1 million) falen-thanks to Facebook, which has galloped to 1.3 million users in less than a year, and now looks set to be India's most desired site. "Facebook is the range." as of today, there's no other place online catering to such an upmarket audience. Microsoft manages Facebook's advertising sales worldwide: Indian advertising is already visible on Facebook, and direct selling from India will begin soon. In general, advertisers from the consumer, lifestyle and banking segments are hot on the young demographic profiles on social sites.

The levels a clutch of homegrown sites, differently poisoned and eager to get into the space with unique Indian offerings. Their logic as most of the content generated is Indian, a social network with Indian "sensibilities" stands a better chance of striking a chord with users. People can easily manage a couple of social networks...users aer not restricted to one site.

While none of the local players have the engagement levels Mingle box and Reliance Entertainment's bigadda.com are trying to discover niches.

Other players like Sulekha, Ibibo, and Rediff's iShare are hedging their bets by making social networks a part of an over all packages that includes blogs, gaming, picture sharing and so ad revenues, they say, will follow. And it helps that Indians are perceived to be more receptive to advertising. The search, platform - be it linked to content, transactions, platforms like video or experimental that will not put off users.

Sites have to create an environment conductive to advertising. And at the same time, not kill the user environment.

By: Parker
Published: 07/21/08

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Social networking

@ 11:57 pm 07/23/08 by niksan

Social networking sites have seen a boom in number of users, page views resulting into more and more advertising and revenue generation. I think that it all started with the launch of ourkut and youtube. These two networking websites triggered the 'social' aspect of web browsing and tremendous potential to earn revenue.

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