So for a while there was a big fuss over social networking sites and the supposed advertising windfall that would ensue, but recently analysts have scaled back their projections and are starting to wonder if the social model can indeed meet expectations. According to a NY Times article which you can check out here,
“MySpace will miss its $1 billion revenue target. When the News Corporation announced the projected shortfall in April, several analysts downgraded the company, sending shares down 5 percent.”
Due to failed projections Myspace is going back to the drawing board and is redesigning their homepage to be more “ad-friendly” is this a good thing? It’s still to early to tell, but at least they recognize that it needs to be improved upon.
-Armando Osuna
Online Media Planner, SiteLab Interactive
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