Saturday, April 19, 2008

Google Screwed Up My Space????

Well, lots of geniuses are trying to figure out how to earn money by social networks.. For example MySpace, Hi5, facebook.. Like people they don’t check facebook or any of those social networks to buy a bar of chocolate! Lol! But they're there to connect with friends.
Any how, Google has an agreement with MySpace, which has proven unfortunately disappointing.. the deal was that google will serve advertisement on MySpace till 2010. In return it will pay the social network $900 million as part of a revenue share agreement..

The problem is :
If Google doesn't make enough money over MySpace to meet the minimum revenue-share requirements, it has dig deep and make those payments, anyway. And thus far, the deal has shaved roughly 1.5 percent off the company's gross margins, according to estimates from Bernstein Research analyst Jeffrey Lindsay.
All In all, the company's main purpose is business is search, not social media.. Google said on yesterdays earning s conference call that they’re trying new things –including demographic target-and they’ve seen progress…
Well i don’t know how companies earn money in adv. On social netwrok while people are on to chat. For example , i get really annoyed when an adv pops up out of no where.. some adv are just way to useless :S !


1 comment:

Media and New Technologies said...

u got a point in ur conclusion.i hate when an ad pop out too while working on sthg and i don't care about them.donno how do they profit from it?