Monday, August 16, 2010

How do social networking sites like Friendster and even Youtube generate revenue?

Is it thru CPM (cost per impression), CPC/CPA (cost per click/action), affiliate marketing?

How do social networking sites like Friendster and even Youtube generate revenue?
No there is no other way.





Sites like Myspace and Friendster are based on ads.





I don't even think they use click based ads





They get raw money, like thousands from that.
Reply:Yeah, basicly through the ads on the sites. And with the millions of people visiting those sites, people are bound to click on the ads.
Reply:Great question.





This is a guess based on some research, but here goes.





The CPM model would best benefit the site since most visitors will ignore the advertising anyway.





Now that Google bought YouTube I would think that they will start to show AdWords ads soon. AdWords shown on a publisher site is AdSense and has a much lower CTR.





Michael


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