Tuesday, September 22, 2009

Questions raised over financial worth of social media site

A sector commentator has pointed out that in order for Twitter to remain successful, people must continue to tweet and a new report suggests this may not be the case.

Questions have been raised over how much the social media site Twitter is actually worth to advertisers, according to an industry commentator.

Laurie Sullivan, reporting in the Online Media Daily blog on Media Post, found that this uncertainty will be further exacerbated by a study set to be released by Crowd Science this week.

In the report it will indicate that 24 per cent of Twitter users have stopped using the social media service or have never tweeted.

The sector commentator spoke to Dennis Miller, general partner at Spark Capital, who pointed out that there is a lot of pressure on advertising agencies to make the most of the potential offered by social media platforms.

He also commented that he expected that "money will follow the eyeballs", so as long as people stay interested in using such sites there is sure to be commercial viability.

Spark Capital is an investment firm which has a stake in Twitter, as well as in other technology companies such as Novatel Wireless and Aether Systems.

One potential problem that Mr Sullivan highlights is that people must continue tweeting for the social media website to continue its success.

22/09/2009

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