http://www.nytimes.com/2009/04/27/technology/start-ups/27global.html?_r=1It blames developing countries adds to the server load of popular social networking and sharing websites, but doesn't contribute back (in terms of money)
Is that true?
Social networking & media sharing sites make money out of advertisements. And the most targeted geographic areas are North America and Europe. Above mentioned article states that ad revenue is good from these areas.
I wonder how, though. Does anybody click on web advertisements? I mean you know its an advertisement, right? Why would you click on it? I never see the right side of google search or gmail. Sometimes "ads by google" disguises as web content itself and it probably triggers some clicks by the visitor. But other than that how do the web page ads attract any user interest? Especially the text ads.
So, how is the web users different in developing countries so that these sites don't get anything in return? I guess it has to do with the avg age of the users. In NA & Europe, there are quite a lot of middle aged and aged internet users. But in world #3, most of the net users are in 20s. And they're smart enough to avoid ads. Many of my friends have software such as adblock installed on their browsers to "clean up" the web page before it comes to them.
Well, then how do you make money here out of ads? I don't know, but I'm sure you can. You guys must check the multimillion dollar advertising program called IPL (Indian Premier League). They've succeeded in making money out of advertisements (directly & indirectly). And that's hell lot of money.
To conclude, avoiding developing world is not the way to go for internet services. But, understand the culture differences, demography and tailor your business model to fit this space. All the best in your business.