While the big guys like Microsoft and Yahoo argue, ad revenues are part of the buyout valuations.
Ad Model Disappointing
And today’s WSJsays (Social Sites don’t Deliver Big Ad Gains) ad revenues from social networking sites are disappointing.
One problem is that social networking content is largely uncontrolled, and advertisers are leery of showing up next to dirty socks or off-color photos. So if you’re banking on the ad model for revenues from social networking, factor this in.
Other than using Adsense, it is very difficult to estimate ad revenues in social networking sites in the early stages, before pageviews are documented.
What’s your solution? Please leave a comment.