Modeling The True Value Of Social Networks: 2009 Edition

Description

Modeling The True Value Of Social Networks: 2009 Edition

A year ago we modeled out the true value of various social networks based on the idea that users in high-value online advertising markets like Japan, the UK and the U.S. were worth more (financially speaking) than those in lower value online advertising markets. Facebook had recently become the largest worldwide social network in terms of users, but based on our model MySpace was still by far the most valuable social network.

We’ve now remodeled social network valuations based on current user numbers and Facebook’s most recent $10 billion valuation . The results are dramatically different.

Based on the original year-old model, if Facebook was worth $15 billion (their then-current valuation), MySpace, with far more U.S. users, was worth nearly $20 billion:

Our model takes Comscore data for available countries and regions. We’ve graphed each of 26 well known social networks with the data we have been able to collect. We’ve then calculated the average advertising spend (estimated by PriceWaterhouseCoopers in a recent report ) for each person online ...

Original URL

http://www.techcrunch.com/2009/06/04/the-true-value-of-social-networks-the-2009-updated-model/

http://www.techcrunch.com/2009/06/04/the-true-value-of-social-networks-the-2009-updated-model/