In case you didn't know: China scales. Let's take QQ.com as an example, the leading Chinese online social network. The site is reported to have more than 300 million active accounts. That is eight times the member base of Facebook -- and it's the same size as the US population.
What's also remarkable (and different from the Western social networks) is QQ's monetization. While Facebook posted revenues of $150 million in revenue for 2007 (and according to +8* a loss of $50 million), MySpace (purchased by News Corp. for $560 million) is projected to generate $750 million in revenue this year, and Bebo (purchased by AOL for $850 million) had revenues of just $20 million in 2007, QQ reported revenues of $523 million and an astonishing operating profit of $224 million in 2007. The revenue distribution is unusual, too: 60% of the revenue came from services like games, an additional 21% from mobile services like ring tones, and only 13% from online advertising.
Do added value services trump ad based revenue models?