Thursday, June 19, 2008/
Social networking sites such as MySpace have seen a large growth in advertising revenue, but if the site’s estimated gains for this year are anything to go by, they’re not living up to the hype.
News Corporation acquired the site three years ago and saw its user base jump from 16 million to 118 million. However, advertising revenue seems to have slowed, with research site EMarketer predicting MySpace will earn $755 million this financial year, well below its forecast of $1 billion.
“The jury’s still out on MySpace’s ability to monetise,” Michael Nathanson, an analyst at Sanford C. Bernstein & Company, told the New York Times. “We don’t have much conviction in the long-term ability to grow this business based on what we’ve seen lately.”
But Chris DeWolfe, president of MySpace, is optimistic about the future. “We are far ahead of where Google or Yahoo were at this stage of growth,” DeWolfe says.
Read more on social network sites
Amantha Imber runs a successful business — but she still has impostor syndrome Amantha Imber Inventium founder
Social media isn't about numbers, it's about connection Carlii Lyon Carlii Lyon PR founder
"My early decisions were rooted in fear": How good hires can set small business owners free Nancy Youssef Classic Finance founder
"No staff turnover": Business success hinges on a thriving company culture David Fazio Mate co-founder
Five ways to mentally prepare for the brutal capital-raising process Stacey Fisher Minnow Designs co-owner
In the age of online shopping, it's retail staff that make or break businesses Cal Doggett Properties & Pathways director