In latest news from MySpace, they have released a beta version of MyAds Service. It provides businesses with a tool to create customizable banner advertisements using HyperTargeting technology. This allows advertisers to create specific ads based on user demographics and interests. Relating back to the economy, Jeff Berman, President of MySpace Sales and Marketing, stated: “We’re giving businesses better ROI ASAP and in today’s economy, that’s a must-have.”
I came across this interesting article questioning the future viability of Facebook. As the article mentions top executives have left the company leaving some wondering if the end is in sight. Also, Facebook will be allowing employees to “cash out” their stocks beginning November 1st. As the articles states:
“In theory, Facebook could turn around and sell the former employee shares – and more – to outside investors. The trouble is, funding may not come easily in tough financial times.”
This previous post on our blog discussed the effect the economy could have on Community 2.0, and it will be interesting to see if it will take down the largest online social network.
The main topic of conversations and thoughts running through everyone’s mind, seems to be the economy and how it will affect them. The Community 2.0 industry is not above these concerns. This article, discusses the web 1.0 bubble that burst, and how that may be mirrored in today’s time with Community 2.0. As we have reported before marketing on social network sites has not been proven as valuable yet, and, as this correlating article mentions, “social networks are struggling with how best to monetize their millions of users”. The article further provides this quote from Debra Williamson, senior analyst at eMarketer, as saying:
“As in many other developing advertising markets, much of the spending on social networks is driven by leading-edge marketers who are willing to take risks”
Since organizations are still unsure of implementation methods that will maximize their ROI, and are taking a harder look at their budgets, do you think that the world of C2.0 will see a large decrease in their advertising revenue? In risky times, trends are generally to follow tried and true approaches as opposed to risking money on new concepts. Conversely, some feel that it is important to take risks at exactly times like these. What are your thoughts?