Is monetisation of social networks the way forward?

As social networks continue to grow in popularity - which may have led to many businesses launching a social media marketing campaign, it has been suggested that the only way such platforms can generate money themselves is by selling data.

Such is the assertion of Neil Stapley, founder of Dadooda.com - a content networking site - who said such thinking was the general consensus and that monetisation of information is the way forward for social networks.

"It is highly unlikely that web-based enterprises will be able to survive on advertising revenues alone," he noted.

Mr Stapley added that free access and usage "is fine for promotional purposes" while the brand was being established, but that as with any product or service "you have to get the cost/revenues equation right or quality will suffer".

His comments come after it was revealed that micro-blogging and social networking site Twitter has received a new round of funding, though it has not yet generated a viable revenue stream.

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