The Social Networking Sites have certainly become a ubiquitous feature of the online world. Lately lots of entrepreneurs have recognized the immense potential that lies in it. This has led to rise of many new SNS.
Recently, QQ7 a Chinese SNS has announced its 2007 earnings. In the year 2007, QQ made $523 Million while the other popular SNS like Mixi had $100 Million, Facebook $150 Million, Cyworld $(200 Million). While their operating profits are as follows:
QQ: $224 Million
Mixi: $35 Million
Facebook: $(50 Million)
Cyworld: $(100 Million)
For more facts and figures please download the pdf file.
We can see that QQ has generated 4 times more revenue than the Facebook. Facebook suffered loss of $ 50 Million. The most surprising stat being that QQ earned only 13% from online ad revenue. While majority of their revenue came from virtual goods, games and mobile services. This has been the revenue model for QQ. For more info about other SNS business please download the pdf.
Well I think that it is now a wakeup call for all the SNS sites which solely depends upon online ad revenue model. They should come up with some new innovative ideas of earning revenue in such a way that it won’t be bugging their users just like many online ads do.
Read this in Techcrunch !!
A very interesting business model indeed but I can’t imagine a company like Facebook doing it. As I see it, only firms which concentrate their efforts in one specific geographical territory can do it… For ex big adda can try it India!
well Rushabh….I would like to state here that these social networking sites earn through each and every click people make on their sites aswell as the posts that we people exchange on those sites adds up to their revenue so I cant agree to ur analysis of Facebook getting into losses…….