Social networking 'not making money' shocker

Facebook, and other social networks, may be in trouble - a story from over the winter break.

No one should be really surprised about this - Facebook was grossly overvalued and the whole data-whoring - sorry, mining - thing has always proved problematic to actually capitalise on.

What does this mean for regional social networking endeavours, such as Jeeran, Dubai Lime, or AdNation itself?

Well, hopefully we might all be in better shape, having not squandered countless millions on development, or indeed strawberries and muffins. You would also hope that internet operations in the Middle East are more aware of how limited development has been in internet advertising here, and so have set their sights lower.

H2O - the developer behind Dubai Lime, and the technical stuff of AdNation, has just launched its own attempt to unlock some of the monetary potential from social networks. I'll be trying to speak to H2O headman Steve Vaile about this, and what potential he sees in the market - stay tuned for that.

The yo-yo of online advertising

MediaME supremo Zeid Nasser thinks online advertising growth is going to slow next year.

Other people out there think online advertising growth will accelerate next year.

Which is it?

Nasserites would point to the abject ignorance throughout much of the regional marketing industry - and, possibly, to the lack of Old Boys' Club/nepotism/Lebanese Mafia/whatever contacts among the new online upstarts in the region.

"Others" - whoever they may be - say that in the new economic climate of blind panic, clients will be less willing to put up with the Bad Old Ways of no ROI, no meaningful data, and inflated old media rates.

Rational types would probably hope for the latter - but as far as I can see, we just can't tell what will happen, until the economy starts to bite more widely. Which just isn't happening yet - and in some sectors, may not happen at all.

AdNation will be paying close attention to this one. Thoughts welcome.