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Tuesday, July 29, 2008

Big Money at Social Media

I read two most interesting articles about where the big money is at social media. Social media is big business, but a most discussed issue is how social networks may monetize. CPM advertising rates are low at the social space, but there are alternative earning opportunities. According to the articles mentioned below the big money is spend for the development of rich internet applications or widgets used for advertising actually. Widgets are applications able to deliver information or entertainment and may contain banner adverts or are the advertising medium themselves. Being the advertising medium themselves widgets are great branding and retention tools. Typical content of widgets may be games or up to date information.

The most interesting part to me has been the introduction of virtual economies at the second article. Virtual economies or currencies are reward systems, where users of these applications may earn points. This points may become exchanged at virtual economy services into real money, goods or may be used for other stuff supplied within the widgets. Do not miss the feed, as more about widgets is coming up soon at emediablogger.

Don’t LOL: Social Ads Rev Up Revenue
Social Media Part 2: Back to Basics for Cash Bonanza

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