Social networking websites

5 10 2006

Recently, MySpace became the most visited website in America (The Economist, 16 Sep 2006). Its acquisition by New Corporation last year (by Rupert Murdoch) for $580m. Nowadays, many media groups and investors are created these kind of website which allow people to create their own pages with photos and blogs and make connections with all people around the world. It is definitely making our world small then before. For example, Facebook  (has 9 milions users that was founded by Mark Zuckerberg, a student who put Harvard’s yearbook on the internet in 2004) and Bebo ( a site popular with teenagers) are the new social networking sites that connects you with the people around you. Surprisingly, retail companies such as Wal-Mart (American Company) also has launched a social-networking site that called The Hub – which is a contest and social network type of site. The site also features Wal-Mart fashions. ( it seems like the target audiences are American teenagers).

Many investors now accept such as MySpace site can make a lot of  money by selling advertising space. According to The Economist that last month MySpace allowed Google to sell a big chunk of ad space on its site over the next 3 years. Google has guaranteed a minimum of $900 m in revenue in return. If this is a true news..that for sure you will see many new and small social networking sites will appear in these few months. My question is –  how advertising companies cope with this problem??

Now, the Google, Yahoo, and AOL also have launched these kind of services for their users.




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