This po tential juxtapo sitio n is a majo r pro blem

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Unformatted text preview: k’s responsibility (if any) to control such abuse? 6. How do most app developers make money? Have you ever helped a Facebook app developer earn money? How or why not? 7. How do Facebook app revenue opportunities differ from those leveraged by a large portion of iTunes Store apps? 8.6 Advertising and Social Networks: A Work in Progress L E A RN I N G OBJ E C T I V E S 1. Describe the differences in the Facebook and Google ad models. 2. Explain the hunt versus hike metaphor, contrast the relative success of ad performance on search compared to social networks, and understand the factors behind the latter’s struggles. 3. Recogniz e how firms are leveraging social networks, including efforts such as Facebook engagement ads and deals, for brand building, product engagement, and driving purchase traffic. If Facebo o k is go ing to co ntinue to give away its services f o r f ree, it needs to make mo ney so meho w. Right no w the bulk o f revenue co mes f ro m advertising. Fo rtunately f o r the f irm, o nline advertising is ho t. Fo r years, o nline advertising has been the o nly majo r media catego ry that has seen an increase in spending (see Chapter 14 "Go o gle in Three P arts: Search, Online Advertising, and Beyo nd"). Firms spend mo re advertising o nline than they do o n radio , magazine, cable televisio n, o r newspaper ads.D. Takahashi, “Internet Ads Finally Surpass Newspapers,” VentureBeat, April 14, 2011. But no t all Internet advertising is created equal. There are bo th signs that so cial netwo rking sites are struggling to f ind the right ad mo del and trends suggesting that advertising o n so cial netwo rks co uld be a mo ney-gushing bo nanza. Go o gle f o under Sergey Brin sums up early f rustratio n with so cial media advertising, saying, “I do n’t think we have the killer best way to advertise and mo netize so cial netwo rks yet,” that so cial netwo rking ad invento ry as a who le was pro ving pro blematic and that the “mo netizatio n w...
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