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Skype considers advertising

Trying to keep talk cheap
Tue May 11 2010, 16:58

VOIP AND CHAT OUTFIT Skype is looking to advertising in the hope of improving its income statement.

Talking to the Telegraph, Skype's CEO Josh Silverman said that the firm will consider an "additional revenue stream", admitting that it might be the only way to keep a portion of the service free.

That's not surprising given that its previous owner, the online garage sale goods flogger Ebay, decided to palm off 56 per cent of Skype at a knocked down price after deciding it couldn't make money out of the firm.

Thankfully Silverman realises that any new way of bringing in cash for the company has to be "tasteful". One would hope that means the firm will adopt a metered approach to advertising, something that has served Google, the biggest ad broker on the web, so well.

The problem for Skype is that, should the company want to go down the route of targeted advertising, it would essentially have to snoop on conversations, which will not particularly endear it to its users. Privacy concerns aside, implementation could also be a sticking point. Although video conversations and online chat sessions might easily be overlaid with adverts, voice is somewhat trickier.

Unlike its web contemporaries, if Skype is successful it is likely to make a killing, not just because of the number of "eyeballs" any ad campaign could attract but also due to the low running cost of the advertising network. Since Skype runs over a P2P network, the very users who use the network provide the resources that keep it afloat.

Given that any advertising scheme is likely to see an increase in data being shifted by Skype users, not only will the firm be getting money from the advertisers, but it will also be getting its users to foot the bill too.

Nevertheless, Skype does provide an invaluable service to many across the globe, and few would begrudge the company trying to make some money, especially if it enables the firm to keep at least parts of its services free. The main concern is whether it can figure out how to make money without sullying the user experience or violating its users' privacy. µ

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Comments
Not interested...

I remember when Skype started and it was all the rage. Everyone wanted it and everyone bragged about being on it because it's just so much better than everything else out there.

In my opinion it's gone the way of ICQ. I only know one person that uses it and even they eventually moved over to Live Messenger and Facebook because everyone they knew was on them. Everyone I know has dumped Skype.

I wanted to save some moolah by using the pc to land line phone calling at $2+ a month for free land calling in North America. What I found was it was super laggy. Everyone thought I was arguing with them because due to the lag it seemed like we were interrupting each other in mid sentence. This even occurred on local calls. 2-3 second lag is simply intolerable, and with the "0123456789" telephone number that showed up on everyone's call display no one answers their phone thinking I was a telemarketer. I promptly cancelled my account as it just was not worth it.

I think they lost out a long time ago. They should've offered a scrolling advertisement bar in their software and offered absolutely free land line telephone numbers so people could call in, and also free outgoing pc to landline calls a long time ago. Look how wealthy Google is today. That could've been Skype. In addition they could've offered cool USB video camera-type phones and really paved the way to the next generation of telecommunications. Instead, Apple invented the iPhone and the nextgen video phone hardware.

Too little too late. They should just buy ICQ already.

posted by : BruceLD, 13 May 2010 Complain about this comment
Better be careful

I know professionals that use Skype to cut down on phone costs.
If Skype wants to introduce advertising, it had better make sure that there is a smut control, otherwise the pros who use it are going to blow a gasket.

posted by : Pascal Monett, 12 May 2010 Complain about this comment
Skype is good...

Skype is good and it's only free for PC to PC calls. They can't charge for it, or users will move on.

While PC to Phone and vice-versa is cheap compared to regular lines. For me it's best of both world.

As for the comment that you need a webcam (you do not need one) and for sitting in front of the PC (you do not need a PC to use Skype). I use Skype on my phone, connect to any free WiFi out there and you can make calls for free to PC users or call phone number at a much lower rate then telecom companies.

As always, people who don't know how to use a software (like Skype) will be quick to discard it.

Cheers!

posted by : UTN, 12 May 2010 Complain about this comment
Skype, mmmm, I have played with it a couple of times, and that's it.

Skype - it's a gimmick, not a habit.

Skype - I need to setup a webcam or a headset, and I'm stuck in front of my pc. It's great for showing old people they can talk to their distant family, but it's a pain in the ass. Network lag etc.

How to make it a habit? I would make it an addon piece of software, include it in games for voice chat, allow it to connect and sync with my mobile/outlook/email/organiser and be able to make my phone work over my internet while in my home.

Gamers are young, get them on to it, make it a social site addon etc, and allow gaming websites to add it on to forums. Skype - who's online etc.

Skype - make it work like my phone.

Rechargable headsets - where are these? Who wants to be stuck on a 1.8m cable headset?

Bluetooth my ass, 10m is not enough, I want proper wireless around my house. Make the headset Wifi or something.

Why can't skype make my mobile/home phone work through my internet connection? Now that would be worth something.

If I could "use it like a phone" then I would pay for it on my telecoms/broadband as part of the package.

SKYPE - Money

Roaming Ripoff - SKYPE to the Rescue!

SKYPE could be the Roaming Ripoff Hero.

Put Skype on your mobile and when you are abroad you can just buy a data sim and your phone will make cheap calls using skype over the data network. Can it do that, it should!

That would make me consider using it and BUYING it.

It's easy to make money out of skype, give people easy to use, pretty to look at, make it cool. It's not hard.

posted by : interested_party, 12 May 2010 Complain about this comment
EBAY IS MUNNY HUNGRY

IF EBAY (SKYPE) STARTS PUTTING ADS INTO SKYPE THEN DROP IT LIKE A HOT POTATO FOR OTHER FREE SERVICES LIKE GIZMO FOR INSTANCE. OR OPEN SOURCE ALTERNATIVE. BIT TORRENT PHONE? AND BY THE WAY, BE CAREFUL WITH YOUR PHONE COMPANY, THEY KREPT MY PHONE BILL UP TO LIKE $70 A MONTH (THATS LAND LINE) BEFORE I CALLED THEM ON IT, NOW ITS BACK DOWN TO $20 AND STILL TOO MUCH. I GOT A SPA2102 VOIP ADAPTER OFF EBAY AND IF I CAN EVER FIGGER IT OUT I WILL TELL THE PHONE COMPNY TO FRIG OFF. BY THE WAY I GOT UBUNTU ONTO MY LAPTOP FINALLY SO ITS NOT LIKE I CANT FIGGER OUT STUFF, EVENTUALLY.
I AM NOT VAN SMITH, SO STOP DELETING MY CONTRIBUTIONS!

posted by : SHOUTER, 11 May 2010 Complain about this comment
Never

Keep the services free!!

posted by : Haarden, 11 May 2010 Complain about this comment
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