This chart is interesting. <a href="http://www.technologyreview.com/files/17765/chartusads_x600.jpg" rel="nofollow">http://www.technologyreview.com/files/17765/chartusads_x600....</a><p>Online advertising is growing massively. Social network advertising is growing dismally. Why so many people are still kicking the dead donkey?
Not to pimp my own entry, but I <i>just</i> submitted a post to HN about a 40 yr old company that makes $50-100MM/yr selling white label social network services. Interesting, but perhaps not extremely scalable (i.e., needs a sales force).<p><a href="http://news.ycombinator.com/item?id=227040" rel="nofollow">http://news.ycombinator.com/item?id=227040</a>
Almost no (current) social networks provide a service - they provide a distraction. And we're supposed to be surprised that they're having a hard time making money?
That's because the social networks haven't opened up the floodgates yet, they're still in data collection mode. The real revenues come when they sell your data -- when Facebook tells Miller that you are a central person in your social network who just sent a message about Bud Light to a frat buddy -- that's when Miller sends you a special offer for your next party and when the real revenues for Facebook come.