The New Social Networking Revenue Model.

Google has released CPA ads this week and I believe that this is just 1 step in a process that will lead to a killer model for social networks and dating sites.

I expect at some point sites will be able to feed Adsense  or a clone from Yahoo and MSN  user data such as  Age, Gender, Sex, Zipcode etc of the user viewing an ad.   In adwords advertisers can then bid on keywords as well as demographic information such as age, gender, sex etc.    Currently companies like ford come in and do a run of the site campaign.  Maybe they just want to display girly cars to girls, and guy cars to guys?   Paid dating sites are willing to Pay $12.00 a member for Females  instead of the $4.00 on average they pay now.   There are hundreds of examples about certain demographics being far more valuable then others.  

WTF are google, Yahoo and MSN waiting for?

37 Responses to “The New Social Networking Revenue Model.”

  1. James J. Says:

    Privacy concerns, maybe.

  2. dietrich Says:

    Yep, privacy for reals.

    Also, I’m not going to give up my private information so that *you* can profit from it. If my demographic has worth, I want to be compensated for it. I want a cut. Services such as root.net are only just beginning to surface, but have a lot of potential for democratizing the commercialism of consumer attention.

  3. Markus Says:

    Microsoft is already doing it for users logged into some of their properties.

    Technically, this is information you have given to a service so that they can serve you better. Displaying targetted advertising is part of serving the user better.

  4. farlane Says:

    I see a lot of ads already based upon my location. There is absolutely no reason that I should NOT see ads that are laser targetted to me. My demographic, sure, if that’s the best you can do, but I really want ads for the latest Neil Gaiman or Bruce Sterling work, new discs from Michelle Shocked and people who sound like her.

    It’s in everybody’s interest (advertisers, ad sellers and internet viewers) for advertisers to tag their ads and for viewers to “tag” their interest. I would assume my great aunt Nettie would receive a different ad from Honda with interests like
    car > economical > female > 83 > coastlines (Digital Cary Grant driving along Big Sur?)
    car > economical > male > 40 > coastlines (Beach volleyball team driving to match?)

    I might actually prefer not to see babes & cars ads, and I assume that if I said “rather not” a few times, those would be removed from my stream.

    I would say it’s just a matter of the ad publishers continuing to refine their software. Gmail already shows me ads that are in some cases frighteningly targetted to the contents of the email I read (I never click, but still, I might). The key to it all is a company presenting itself as a trusted repository of your hopes, dreams and vital statistics. I can’t imagine what company that would be…

    Writing this made me realize that way back in the 20th century, I wrote about this. Bummer that I didn’t patent such a system so I could make everyone’s life hell now.🙂

  5. Josh Says:

    I’m looking forward to the refinements in targeted advertising. It will certainly make it a lot better for both the potential customer and advertiser.

  6. Mitchy Says:

    “Displaying targetted advertising is part of serving the user better. ”

    I hear that argument oft repeated by people in behavorial targeting firms such as Tacoda, and it’s a load of horse radish. Targeting advertising is only about click-throughs and conversions, not about “serving the customer”. If firms are serious about serving the customer, they would first ask the customer if they wanted to see any advertising at all. This is not the case. For advertisers trying to cast this in a positive and self-congratulatory light, the “Serving the customer” talking point is the equivilent of political spin.

  7. Jim Says:

    Why do web users assume everything on the web should be free? People put in alot of hours to run websites.. ALOT. So you either have to pay a fee of some kind for using the site, donate money to the site, or the site has to try and recoup that labor via advertising. If you want to be an active user of a site you have to do your part somehow.

  8. Ryan Coleman Says:

    “Also, I’m not going to give up my private information so that *you* can profit from it. If my demographic has worth, I want to be compensated for it. I want a cut.”

    I would argue you are absolutely “compensated” for providing your demographic information. For example Plentyoffish.com is a free dating site that uses advertising revenues to fund the service. Let’s say another dating site that contained no advertising costs you $20/month.

    At the end of the day you realize the value of your demographic information in the $20 you don’t have to spend to utilize the POF service.
    (Additionally you could argue you also save time in not being subjected to completely irrelavant advertising and instead are presented with those ads that actually interest you. Time is money after all)

    Nothing is “free”.

  9. Chris Says:

    Yeah, I do believe that Microsoft already does this — it’s definately important if you want to extract the most value possible from traffic.

    Even just location, age, gender would be beneficial.

  10. jamie Says:

    Came across your site while searching on goole.
    Just reading some of your post\’s, let you know what i think
    jamie

  11. Alex Says:

    Thank You

  12. Jonathan Says:

    Great point Jim…just what I was thinking. I don’t know how people still think anything is really free. What do you mean you must get “compensated”? You weren’t staying awake late into the night developing the site or investing your life savings on getting the product released. Yet you are enjoying the use of the site, or you would not be on there. You are not even asked to pay a fee, so I don’t think there should be too much complaining on this subject at all

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  16. Daniella Says:

    Well, what do you think about mixed applications? Local client software with on-line application? Everything are on the net what the local software know, but firstly you have to use the local database. Can make this together new social networking themes? I think, yes. I’ve a similar dream with my application. Can we talk about each other in private mail?

  17. devlet hastaneleri Says:

    PA ads this week and I believe that this is just 1 step in a process that will lead to a killer model for social networks and dating sites

  18. gelirler vergisi Says:

    new dimensions to msypacefrom endlessly surfing to find cool stuff to surfing for information that is useful and relevant to them, ie surf like an adult.

  19. plastik Says:

    nd guy cars to guys? Paid dating sites are willing to Pay $12.00 a member fo

  20. yer kaplamasi Says:

    The key to it all is a company presenting itself as a trusted repository of your hopes, dreams and vital statistics. I can’t imagine what company that would be…

  21. banka rehberi Says:

    a member for Females instead of the $4.00 on average they pay now. There are hundreds of examples about certain demographics being far more valuable

  22. bad-accessoires Says:

    er for Females instead of the $4.00 on average they pay now. There are hundreds of examples about certain demographics being far more valuable then others.

  23. mantolama izolasyon Says:

    For advertisers trying to cast this in a positive and self-congratulatory light, the “Serving the customer” talking point is the equivilent of political spin.

  24. aluminyum Says:

    like the core group. This is because people with different interests will leave as they are pissed when their stories don’t show up.

  25. mobilya Says:

    Paid dating sites are willing to Pay $12.00 a member for Females instead of the $4.00 on average they pay now. There are hundreds of examples about certain demographics being far more valuable then others.

  26. sorgula sorgulama Says:

    You can tax your peasants out of their homes and sent to die for you for your interest and companies. All in the name of freedom and sophistry is a

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