Nate Elliott, analyst at Jupiter says:
Friendster has contracted with DoubleClick to do their adserving. And, against all odds, they have some decent advertisers (eg, Verizon, Chase Bank) mixed in with all the bizarre pay-per-click stuff. Now, if they could only find some users (despite their claims of 13 million members, they average fewer than 1 million visitors a month), they might have an advertising business on their hands. One shouldn’t hold one’s breath.
Pay-to-play online dating site must find a way to extend the customer life-cycle in order to remain relevant. Adding a social networking component is the most obvious way to accomplish this. Problem is, it’s difficult notoriously difficult to turn a profit with most social networking sites. By striking a deal with a major advertiser, Friendster may be one step closer to profitability.
