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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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- Winter '14