Rolling along with the World Wrestling Entertainment blogs I have noticed something weak while I was skimming through the WWE's 2009 Annual 10-K Report. Under the business section where all the revenue interests of the company is listed, the Advertising section reported how much the company earned for the last three years. Net revenue for advertising and sponsoships was 7.7 million for 2009, 7.4 million for 2008, and 5.9 million for 2007. The amounts account for less than 2% of total revenue for all three years.
My issues with this is that the WWE doesnt utilize the social networking websites to their advantage. Websites like Facebook and MySpace are so popular with everyone on any age level. Millions and millions of people are apart of the social networking community. I have been apart of the WWE Facebook and MySpace page for awhile now and I hardly ever hear or see anything about the WWE. Of the millions and millions of viewers every week watching the WWE there is only about 475,000 fans apart of the WWE Facebook page.
The WWE could easily put their name out there through a Facebook or MySpace and gain millions of new fans. With a better investment in soical networking websites the WWE could gain better Advertising and Sponsorship deals with companies they never could have gotten before.
Attracting new and better adversiting deals will only increase the value of the WWE product. The increased value of the WWE will attract even more companies with deeper pockets. Eventually this will increase the total revenue from advertising.
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