E-commerce. Social Networking Sites Essay Example | Topics and Well Written Essays - 2750 words

E-commerce. Social Networking Sites - examine ExampleFacebooks most important method of earning revenue is through advertising. A major orb of its revenue is generated by the self-serve advertisement system which allows companies to decide who they want to market to, based on heterogeneous preferences such as age, gender, marital status and the likes (Guardian 2009). The same report talks about Facebook selling realistic advertising estate on their webweb sends to anyone who can dole out the cash, directing them to pages or profiles as they pull in fit. Finally, Facebooks base of 3rd party apps has been the basis for many credit-card based transactions (in games for example) of which Facebook receives a true percentage. All of these methods have helped Facebooks revenue rise enough to be able to breakeven with its mean solar day to day costs which is a major breakthrough for any social networking site (Guardian 2009). MySpaceThe leading social networking site before Facebook wa s established, MySpace had made its name in the field for being a site that was preferred by upcoming musicians for its ability to allow flabby sharing of music. It was considered the youths most preferred network, since it was the first of all site that allowed them to relate to brands and bands (Web Strategist 2008). ... MySpace The leading social networking site before Facebook was established, MySpace had made its name in the field for being a site that was preferred by upcoming musicians for its ability to allow easy sharing of music. It was considered the youths most preferred network, since it was the first site that allowed them to relate to brands and bands (Web Strategist 2008). However, the site currently owned by Specific Media, failed to innovate and lost a lot of its market dish out after the advent of Facebook, and has a current active user-base of 110 million users (The Next Web 2010). MySpaces revenue model also revolves mostly around advertising. The site uses t he basic two types of advertisements that are use by a lot of popular websites, namely pay-per-view and pay-per-click. In the former, the marketer pays a certain derive of money to have his Advertisement Banner up on MySpaces pages while in the last mentioned he pays a certain amount (usually a few pennies) for every click that his advertisement gets. Although that whitethorn not sound like much, but with MySpaces users still numbering in the million, the numbers sure add up with the company making more than $550 million in revenue in 2007. However, since MySpace has locomote behind its major competitors, it needs to attract more users and perhaps find a more efficient way of earning revenue than just relying on their current method, which seems archaic in comparison with Facebook. Twitter Launched in March 2006 by Jack Dorsey, Twitter revolutionized the concept of communicating through social network sites. kinda of relying on photos or music, the heart of Twitter