Twitter founders Evan Williams and Biz Stone recently said in a conference in San Diego that they don’t know how Twitter will make money or what, exactly, the future direction of the company is. It is widely known that Facebook is struggling to make money using their current online advertising model. And, YouTube management is having its own trouble monetizing its website.
How is it possible that online social networking behemoths like Twitter and Facebook and the online video giant YouTube are struggling to make money?
Traditional advertising, which includes display advertisements woven into websites, search results, email, and online video, contributes significantly to many companies’ revenue stream. However, focusing only on these types of advertisements may limit their growth and profitability.
As viewers tire of blinking banner ads and begin to subconsciously ignore them, advertisers (and the companies that sell advertising space on their webpages) will need to find new ways to get prospective customers’ attention.
Companies are increasingly shifting focus and resources to emerging internet marketing channels. Advertisement through blogs, widgets, mobile devices, virtual worlds and video games are becoming increasingly popular and will help drive future revenue growth.
Clearly, online advertising is here to stay, and is evidenced by the fact that internet advertising sales were up 10.8 percent, to $23.4 billion, in 2008 according to a March report by PricewaterhouseCoopers. But, shifting even a small portion of resources from traditional internet marketing channels to emerging ones may benefit companies like Twitter, Facebook and YouTube more than they expect.
No comments:
Post a Comment