Social Networks Urged to 'Raise Ad Rates or Die'

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Social networks will need to start charging brands a premium for ad slots if they are to survive, according to a report released today (Wednesday).

Datamonitor's Business Insights study predicts that charges for advertising on social networks will have risen steeply by 2015, as the leading players attempt to avoid a similar fate to Bebo.

The report predicts social networks will make only pounds 4.14 per user per year, forcing them to rethink how they can make a profit.

It also suggested that marketers should look beyond social networks' user numbers and focus on the proportion that regularly visit the sites The report pointed out that, while the number of …