A few months ago I described the “Grinda Hypothesis” where I posited that social networks would be hard to monetize (Advertising on Facebook and MySpace: the “Grinda Hypothesis”). It seems that Google is coming to the same realization: they are losing more money on their deal with MySpace than they expected (http://bits.blogs.nytimes.com/2008/01/31/googles-loss-is-murdochs-gain/?ref=technology).

Maybe I should add a time element (correlating improvements in demographic targeting on social networking with ad value and ad space) and make the Grinda Law 🙂 Then again, I should keep the “Grinda Law” for something more meaningful 🙂

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