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Schmidt: Web 2.0 'Not Necessarily A Revenue Opportunity'

In a lengthy interview, Google CEO Eric Schmidt reveals that "Web 2.0 architecture is not necessarily a revenue opportunity ... This is not where the money is," he says, marking the first time a major Web media exec has publicly suggested that certain forms of user-generated and social media may not be monetizable.

Even Google's MySpace search deal, once thought to be a lucrative partnership, hasn't panned out the way Schmidt and other Google execs expected. "MySpace did not monetize as well as we thought. We have a lot of traffic, a lot of page views, but it is harder than we thought to get our ad network to work with social networks," Schmidt said, adding, "When you are in social network, it is not likely that you´ll buy a washing machine," for example.

Social network advertising "has to be more entertaining, more interesting, more immersive compared to what we have today," to be effective, Schmidt said. "I believe there will be some new advertising products, that will work, but I don't think they are invented yet. We and others are working on social advertising products."

Read the whole story at Frankfurter Allgemeine »

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