As Facebook Grows, Can It Profit?

Social-networking site seeks to leverage user data to boost ad revenue, raising privacy concerns. Facebook - Social network service - Privacy - Social network - Online Communities

Senh: That's the big question, they're growing fast, but can they become profitable. With click-thru rates on social networking sites being so low compared to content sites, can they find another revenue stream? Will targeted advertising work? They've been talking about it forever. We were never really able to make targeted advertising work for Rotten Tomatoes, mainly because the size of that audience becomes so much smaller when you target them. But Facebook is one of the largest sites in the world, so that might not matter. The only problem is MySpace has been trying to figure that out since they were the biggest social networking site in the world, and look where they went.

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