Technology Review special issue on Web 2.0
Tim Finin, 10:20pm 24 June 2008
The July/August issue of Technology Review is focused on Web 2.0. The lead article, “The Business of Social Networks“, asks “Web 2.0–the dream of the user-built, user-centered, user-run Internet–has delivered on just about every promise except profit. Will its most prominent example, social networking, ever make any money?”
“Social networking is the fastest-growing activity on Web 2.0–the shorthand term for the new user-centered Internet, where everyone publicly modifies everyone else’s work, whether it’s an encyclopedia entry or a photo album. The growth of social networking is astonishing, and it has spread to sites of all sizes, which are increasingly intertwined as platforms open (see “Who Owns Your Friends?”). Even small players are soaring.”
There are quite a few interesting stories on various Web 2.0 topics. Visit the table of contents to see what’s available.
Ebiquity Blog
July 5th, 2008 at 2:50 pm
I recently sat in at a round table discussion at the California Assn of Realtors. Social Networking, 2.0 and its impact on the real estate business was the primary focus. The main question was, “Does it work to drive business?” The text can be found on their site.
Yes, social networks can drive some business, although it is problematic. Successbully working these networks require a large input of time and energy which distracts from the business at hand. If one is using social networks to drive business the focus must remain on that. Unfortunately the clear majority get so involved in the social networking aspect of these communities that little business value is recognized.
In a nutshell, it is a full time job driving traffic from social networks, there is little time left to perform in your career as an individual practioner. Many are so obsessively involved in these sites, they have lost the focus on and and fail in their business. They are so busy promoting their business, the time to apply it is dissipated.
Teams that have one person working the networks yet are still able to function in their business are having much better results. Still, the amount of business to be derived from these social networks is limited and few are successful enough to run their entire business strictly from these networks. The networks need to be part of an overall business plan, unfortunately most network members are not savvy enough to recognize this.
Placing ads on these networks is what drives revenue to and supports the social networks. It remains to be seen if enough businesses will advertise on these sites or if the sites are able to drive enough traffic to cause repeat business from the advertisers.
If the ROI isn’t there the investment in the ads will not be either.