Speaking at an annual Goldman Sachs media conference, InterActiveCorp chairman Barry Diller dismissed the social networking craze, but he said the Web in general is still in the early stages of fulfilling its potential as an advertising medium. Despite the deceleration in online display growth, Diller expects ad models based on TV to play an increasing role online, particularly pre- and post-roll video ads.
He added that improvements to targeting would accelerate ad growth and that privacy would not really be concern. "Since there is no privacy, there is no use fooling around with it on the edges," Diller said.
Meanwhile, people are giving up their privacy freely on social networks. But pure-play social networking isn't something IAC has an interest in, Diller said, adding that too many services are trying to impose social networks where they don't make sense. Social networking, he said, "will lose its 'flavor of the month' flavor."