Information Technology

Making money on a social network

(BBC) - Just how are social networks, with their millions upon millions of users, going to make money?

The profits should be rolling in: Twitter, which has been catapulted into the public-eye thanks to Stephen Fry and Barack Obama, is currently surviving on multi-million dollar handouts. And Facebook, the global force in social networking, has yet to harness its huge user base to bring in any significant revenue.

Many believe answer may lie in advertising.

Unlike traditional mediums, which were built on the mantra of getting as many eyes on a product as possible, social networking instead allows for targeted ads aimed at ages, interests, hobbies and so on.

Techlightenment, a company specialising in social media advertising, ran the online campaign for the film Tropic Thunder. The firm’s head of media, Richard Ireland, says social media allowed them to not only publicise the film, but also advertise directly at certain types of people.

“We could easily display our ad for people who say they are fans of Ben Stiller,” he says. “Or Dodgeball, Jack Black etc. It’s really about making it relevant.”

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