Sara Kimberley
Apr 28, 2010

Social networks urged to 'raise ad rates or die'

GLOBAL - Social networks will need to start charging brands a premium for ad slots if they are to survive, according to a report released Wednesday.

SNS, including Twitter, urged to rethink their monetisation strategies

Datamonitor's Business Insights study predicts that charges for advertising on social networks will have risen steeply by 2015, as the leading players attempt to avoid a similar fate to Bebo.

The report predicts social networks will make only US$6.35 per user per year, forcing them to rethink how they can make a profit.

It also suggested that marketers should look beyond social networks' user numbers and focus on the proportion that...

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