Social Networking & Advertising

Is it a long term viable business model?

[designhaus]

I was recently having a discussion with a group of friends in the pub about the following and thought the discussion might be nice to be brought into WebmasterWorld:

So with the growth of social networks and social commentary on the internet sites like Tripadvisor, My space, Travel Library and many more have grown in a huge way we felt these sites were pioneering a new type of web.

But do they have viable business models now as they soley rely on advertising from banners and sponsored links?

Second to this we all felt that the growth of the internet in sectors like travel and shopping would be driven by social groups, networks or commentry (eg reviews on tripadvisor). We all felt this was the way the web was heading over the next 5 years.

Anyone else feed the same or different?

[designhaus]

anyone? echo echo ...

[henry0]

Can't agree more!
I am currently working on something in that range but with two levels
(although I wouldn't qualify it of "social")

Free up to certain point then based on a yearly membership fee.

My project is not specialy targetting 16...30+
however in the social area I feel that this age range is the driving one!
On another hand I recently have seen some social/over-50 coming up.

[designhaus]

thanks henry for that shout in the darkness!

Do they have viable business models now as they soley rely on advertising from banners and sponsored links? long term that is!

[henry0]

I did not review any (yet)
but they have the means to advertise on major TV chanels; this is how I noticed it (In the USA)