Facebook Ads – social networking business model

8 11 2007

Facebook has announced its much hyped advertising strategy. As reported by readwriteweb:

Facebook’s ad strategy has three main components:

  • Business pages – Businesses can build profile pages on Facebook that users can interact with. I’m not sure what the benefit is here over the Facebook sponsored groups that businesses have been paying large fees to have for months. 100,000 business pages supposedly launched today, though.
  • Social Ads and Beacon – Ads targeted by user profile data — everything from favorite music to relationship status, and the ability for people to publish product interactions from third-party sites to their news feed .
  • Insight – Marketing and usage metrics for advertisers about who is clicking on their ads and how to better target them.

Missed the occasion to create the new AdSense and what about the use of personal information to target ad? (well, google is already doing it ?). Nothing new in business model. What about giving back someyhing back to content generators? (I.E. users).

Social advertising? What is it exactly? Just advertising on user generated content? or there is something more?

Waiting for next generation online advertising.


Monetization 2.0

31 08 2007

Technorati teaches:

A four year old startup is pressured to answer how investors will make money. Is it going to be an acquisition or maybe even an IPO? And if neither is the case, then is there reasonable revenue to hope for in the future? It is very likely that these questions caused Technorati to start making changes that ultimately got the company to its current state.

So how does a site like Technorati make money? A simple and fashionable answer is: advertising. But maybe it’s not so simple. Firstly, Technorati could not use straight Google ads. That would not look good and would not fit with the spirit of the company. Banner ads are an alternative, but it is harder to make them relevant. When you are showing people popularity rankings and news stories, banners may be out of place. Technorati ended up using generic banner ads , but how effective these are is unclear.

What Technorati also tried to do, it seems, is refocus on things like books, music and movies. This refocus could allow the company to monetize popular content via affiliate programs. This a straightforward play, but the problem is that people do not come to Technorati for that. The users are there for popular stories, hot blogs and trends. You do not exactly think of Technorati when you are thinking about buying a book. For that you go straight to Amazon.

Monetization is a big issue that cannot be ignored. After all, just having a cool service that makes no money is impossible. Read the rest of this entry »

Web 2.0 Expo – Start-up companies

24 04 2007

Last post on Web 2.0 Expo just to talk about some other company and give some other links.

  • Zude – create a personalized webpage from modules that hold your own content or clips grabbed from the web (even embed whole webpages). Each module can be placed anywhere on the canvas, edited, layered, and have it’s transparency adjusted. By their May 1st launch, these personalized pages will be templated into individual, family, group, and business zudes. Nice idea, easy of use maybe too many choices. Business model? Advertising, collaboration tools ? Far to come. Read more on techcrunch.
  • Bungee Labs – new generation application development environment enables the creation, testing, deployment, and management of rich web applications. The company offers a grid infrastructure to run and manage the deployed applications.
  • Yoono – soon to release a new annotation tool for their recommendation-and-bookmarking service. Called Buzz It, the new functionality will be part of Yoono’s installable toolbar for Firefox and Internet Explorer. Buzz It closely rivals the usefulness and functionality of Clipmarks, and Grouptivity–giving users a way to archive and share content they find on the Web.

Nice wrapup on the expo written by Richard MacManus on read/write web.   Also read here

Web 2.0 Expo – Start-up companies

22 04 2007

Web 2.0 start-up companies are raising very quickly and have been, in the last couple of years, the preferred target of Silicon Valley’s veture capitalists investiments, and of big internet companies acquisition strategy. Someone speaks about a new “Bubble” of the internet market but it does not seems so, this time. Well, a lot of companies have good products, brilliant ideas and other just not, but this happen in all market segments, and the web 2.0 “tag” does not mean gold. Most are based on the “traditional” advertisement business model, that works and will work for a lot of time, but the winners will be the ones able to use the partecipation model of web 2.0 to substain and reinforce the actual company business model (amazon is one) and the ones that will find new business models, based on advertisement or whatever else.

User generated contents, feeds, communities, rich web applications, widgets. All these web 2.0 technologies offer undiscovered possibilities of new features and business models and who will manage all data better than others. “Data is intel inside” wrote Tim O’Reilly in his article What Is Web 2.0.

I found an interesting post by Sean Ammirati on SugarCRM participation business model

Web 2.0 expo has offered an occasion to take a look and speak about some new start-up:

Read the rest of this entry »