How Social Sites Make Money?

For years a major source of income for these social media sites has been sponsored ads. I recently came across these interesting stats from 1 year ago. It states only 7% of social sites had diverse revenue channel, 77% derived significant amount of revenue from ads and only 10% were pursuing new revenue channels. I think the industry landscape has definitely shifted more towards diversification. As a consumer and social media user, I do not want to see overwhelming numbers of targeted ads or promotions when I am trying to connect with my friends. Companies have been getting the same response in their social media advertising campaigns; it’s a rather mundane push strategy which customers seem to dislike. And therefore these social sites have come to realize the need for diversification in finding ways to generate revenue.

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