Will display advertising will deliver the monetization social networks need to stay afloat. I'm not so sure.
Apple have it right with their App Store. Salesforce.com are making money from force.com, Google Apps ditto. What do all of these have in common?
Platforms, platforms, platforms, platforms. I think the future of monetization on the web will be in platforms that can deliver a rich application ecosystem. People will pay for applications that are priced right and deliver functionality (or frivolity). Each of these platforms of course have a unique value proposition - mobility for the App Store, social graph for Facebook, useability for Google Apps, business productivity for Salesforce. Certainly, every mobile vendor under the sun now has an app store.
I recently paid $70 for a GPS app on the iPhone. Why? Because I didn't have a GPS and it made sense to purchase a $70 app rather than another $300 gadget. There is no reason why I wouldn't pay for the right app at the right price on Facebook.
Apple have it right with their App Store. Salesforce.com are making money from force.com, Google Apps ditto. What do all of these have in common?
Platforms, platforms, platforms, platforms. I think the future of monetization on the web will be in platforms that can deliver a rich application ecosystem. People will pay for applications that are priced right and deliver functionality (or frivolity). Each of these platforms of course have a unique value proposition - mobility for the App Store, social graph for Facebook, useability for Google Apps, business productivity for Salesforce. Certainly, every mobile vendor under the sun now has an app store.
I recently paid $70 for a GPS app on the iPhone. Why? Because I didn't have a GPS and it made sense to purchase a $70 app rather than another $300 gadget. There is no reason why I wouldn't pay for the right app at the right price on Facebook.
