On September 15, 2009, Facebook CEO Mark Zuckerberg announced that the social network had surpassed the 300-million-member mark and reached cash-flow-positive status for the first time. Those milestones validated Facebook’s core concept of monetizing its service through advertising, and revived a lingering question that has swirled around social networking since its inception: Will users pay for content?
A close look at the social network landscape reveals that beyond mainstream sites such as Facebook and MySpace, paid content is alive and well. Networks that cater to market niches have particularly thrived on hybrids of paid models and ad-based systems. Some of these players, such as LinkedIn, Classmates.com and MyLife.com, are earning at least as much revenue from fee-based content and services as from advertising.
As the online ad market continues to struggle, paid services including membership fees, premium features and virtual goods will take on increasing urgency for social networks, either as primary revenue generators or ancillary income sources.
Key questions this report answers:
- Are social network users willing to pay for content?
- What is the revenue outlook for paid social networking sites?
- What are the prospects for Facebook and Twitter charging their users?
- What strategies work for paid-content providers when ad-supported competitors enter the fray?
Related Reports:
Snapshots China E-Commerce 2009
Web Content Management Market Shares, Strategies, and Forecasts, Worldwide, 2009 to 2015
Co-Branded and Affinity Credit Cards in the U.S., 3rd Edition
Mobile Social Networks: Marketing by Location Shows Potential
Global Digital Economy - E-Commerce & M-Commerce Trends & Statistics
Gigya Private Vendor Watchlist Profile: Connecting Content to Social Media Networks
Online Dating & Matchmaking in the US - Industry Risk Rating Report
Best Practices for Social Media Guidelines
Global Consumer Trends: Connectivity
US Mobile Broadband: Market, forecasts and behavior, 2009-2015
|
(0 items)
