Posted by: Margaret Rouse
Online advertising, Social networking, Technology
Facebook’s real problem isn’t privacy, it’s monetization.
Dave McClure, as quoted in Social-networking sites work to turn users into profits
In many respects, it is the same query that dogged portal companies in the mid-1990s and search engines in the early ’90s. Some were sold. Some went public. Some went belly up.
The ongoing challenge is to concoct a potion — be it through banner ads, premium subscriptions or licensing agreements — that no one has perfected. Facebook, crown jewel of the field, is valued at $15 billion but barely turns a profit.