After a deal ensuring $900 million in ad revenues to MySpace up to 2010 regardless of ad clicks, Google is still having trouble monetizing the social media giant.
“MySpace did not monetize as well as we thought. We have a lot of traffic, a lot of page views, but it is harder than we thought to get our ad network to work with social networks. When you are in social network, it is not likely that you’ll buy a washing machine. It is not a long term problem but it is taking us longer than we thought. We are trying new ways, new approaches all the timeâ€, says CEO Eric Schmidt.
Many say the monetization expectations for Web 2.0 in general have been overblown, and Mr Schmidt agrees.
So where is the next big opportunity?
Mobile platforms.
Schmidt said, “The most obvious large space of advertising is the mobile internet… Just take the success of the iPhone: It has the first really powerful web browser on a mobile device - and many more are still coming. Nokia has one coming, Blackberry has one and Motorola has one. They are all supposed to be released this year. By these products, the advertising gets more targeted because phones are personal. So targeted ads are possible. And that means the value of the ads will grow. The next big wave in advertising is the mobile internet.â€
Talk of mobile advertising and new frontiers has been bubbling up all over the net as of late. It’s a new platform for internet advertising, one the biggest innovations since web usage became mainstream across the world. Google has already announced new features or mobile advertising and we expect to see this sector start booming as the iPhone grows in popularity and competitors prepare to release their own models this year.
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