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Online social networking sites will continue to attract the attention of netizens and advertisers in the 2008, but software developers who used to develop software for social networking sites say their concerns are falling.
Orkut, such as MySpace, Facebook and Google, spent 1 billion of dollars in advertising sales in 2007. Plug-in developers who helped boost the flow of social networking sites did not see much revenue, in part because they did not have effective data on how many users were using their products. VantagePoint Venture Partners partner Duncan. Davidson Duncan Davidson said: "Social networking sites create a lot of browsing, but no one can accurately judge their profitability." At present, all this is in the experiment. ”
Market research group ComScore wants to end the mystery. Given that many of the ways in which users track a site are industry-standard, ComScore will use a revised approach to give advertisers, software developers, and investors a better chance of knowing how many users are using their programs. According to the new plan, ComScore said about 586 million internet users used plug-in software in November 2007, nearly twice times higher than ComScore's estimate last July. Last time, ComScore used the old system, and comscore plans to launch new plug-in usage data by mid-January.
What's the difference? At first, comscore will use the activity data of Facebook's social networking site. This new method works only because it effectively records how many netizens use a plugin. ComScore's old system can only track the use of Flash software by Adobe Systems. Of course, this approach also played a big role, because Flash developed many of the plug-ins we use today. However, this approach does not work on the Facebook site because it prohibits the automatic loading of flash animations.
ComScore organizes newly developed software tools to compute plug-ins developed by the JavaScript language. The group also plans to use Google's plug-in software in future research. Linda, vice president of the Organization. According to Abraham Abraham, the new data can provide software developers and businesses with a clear picture of what users are using their plug-ins and how often they use them.
Silicon Valley's two start-ups, slide and rockyou, are dedicated to plug-in development, developing slideshows, comparing friends or personal web search information, and facilitating the creation of archival data on Facebook, MySpace and other sites. Now, the two start-ups are waging a war of development and public relations, aimed at attracting netizens and advertisers. "It's like Cola and Pepsi," said Jeremy Liew, general partner of Lightspeed Venture Partners Venture Group.
But both start-ups say the popularity of their products is largely underestimated, mainly because they lack the ability to sell ads. Executives at social networking sites and plug-in software companies said 2007 plug-in advertising revenue was estimated at 20 million U.S. dollars, or 1 per thousand of Internet advertising revenue, because Plug-ins did not use data accurately. According to ComScore's November data, slide received 144 million user views, accounting for 16% of the market, while RockYou accounted for 11.7% of the market, with users browsing up to 104 million dollars. Last July, the number of RockYou users was 96 million, which accounted for 11.1% of the market share. and SLIDEMJ e 130 million users, accounted for the market share of 15%.
With improved measurement tools, this is just one factor that software companies are continuing to develop for Facebook, MySpace and other social networking sites. The plug-in has developed an attractive new market for advertisers, and the use of plug-ins has been on the rise since Facebook opened its third-party software last May. At the same time, MySpace is also developing AD systems for independent software vendors.
However, the intense competition between different social networks shows that advertisers are also difficult to reach a large number of users through the media. The market also lacks a standardized plug-in advertising department, do you put banner ads at the top of the page, or do you put skyscraper ads on the edge of a Web page? Advertisers ' concerns about possible violations of user privacy have led to a low income.
Liew points out that internet companies are not agreeing on whether to sell plug-in browsing, clicks or if the installation poses an obstacle to advertising sales, and that he believes ComScore's new system is a big step forward, "but still far from enough". Disney, for example, is in the same cause not advertising on the Affiliate Web page. Coca-Cola also stopped advertising on Facebook's controversial beacon system. At the same time, because of the popularity of social networking sites, industry giants have stepped up investment efforts. Google invested 900 million dollars in advertising for MySpace in 2006, while Microsoft invested 240 million dollars in Facebook last October. At present, Facebook's value has reached 15 billion dollars. These giants will be wary of further expanding investment until social networking sites and plug-in companies have identified advertising operations guidelines.
The number of social networking sites is still growing. According to market research organization emarketer analysis, in 2008, social networking site traffic will increase by 31%, attracting about 489 million broadband users. This year, advertisers will invest 1.56 billion of dollars in social networking sites, up 69% from $920 million trillion in 2007. However, this still accounts for only 6% of online advertising, and in 2008, emarketer forecasts an online advertising market of 27.5 billion dollars. Only a small portion of the money flows to the plug-in software. Hummer Winblad Venture, director of the VCs group, is to invest in a plug-in software Exchange site called Widgetbox. He reckons the 2008-year Advertiser will have 20 million to 40 million dollars to invest in plug-in software-related advertising, which other groups believe is lower. But, he says, "Nobody knows what the value of Facebook users is."
In the short term, plug-in developers are looking for innovative ways to make a profit. Slide has developed well-known plug-ins such as FunWall, Top Friends, and Superpoke, and is also trying to provide branded slideshow services to users. The company is also selling online image frames that look like magazine covers. RockYou, has developed superwall, likeness and x me and other plug-ins, is also working with other plug-in developers to cooperate. On rockyou Web pages with advertisements, the company can get 50 dollars for each plug-in installed. When the CTR was found to be less than 1%, the company stopped loading the ads in the slide show.
However, plug-in software companies need to find more ways to show users more ads. "Plug-ins rely on Facebook, and Plug-ins can be vantagepoint by Facebook," says Davidson of the organization. The