Social networking sites like Facebook/Orkut does benefit by increasing users, how?
1. The higher the users, the more coverage each ad gets. These sites get ads from ad providers & have a robust ad tracking software which tracks the ad coverage, frequency, benefit for ad provider in addition to a plethora of other factors. Hence if ebay provides an ad on facebook, ebay will have an ad tracking software to understand the advantages ebay is having by placing ads. Users click on the adverts on the site & get lured to buy products sometimes. The discussion goes on how ads help in form of banners/lists/flash on sites.
2. These sites track user's behaviour & deliver specific ads which in directed towards each individual depending on his/her behaviour. Thus, the success of ads being potential increases.
3. Today, such networking sites are just one of the many applications provided by software giants. Like Google having orkut, Microsoft having Myspace, etc etc. What they try to do is to maximize users in order to market themselves & attract those users to other products of their's like mail apps, chat apps, etc etc. After all. its an era of marketing gimmicks !
The most popular of the ad provider/consumer products are offered by Google. These are adsense & adwords.
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