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    • Social Networking Overview Tuesday, March 13, 2007 Penn Club, New York Bart Barden, CEO, Excito Media                                 
      • Council Member Biography
      • Bart Barden is the Chief Executive Officer at Excito Media, a company providing
      • online advertising consultancy services. He specializes in niche publishing, social
      • communities, and instant messenger technologies. Previously, he held the position
      • of a group product manager at, the internet division of Microsoft, where
      • he was responsible for the development, planning and performing strategic analysis
      • of advertising technologies; and senior consultant at Ernst and Young. He is
      • experienced in Ad products for brand and direct marketing, paid-search, contextual
      • advertising and targeting, content monetization, streaming video, rich media,
      • infrastructure and platforms, and business development services. He is
      • knowledgeable in advertising and platform solutions for XBOX 360, monetization of
      • advertising services as: instant messenger; and Mobile ads and advertising
      • opportunities within new digital video technologies for IPTV, DVR and VOD.
      • Table of Contents
      • Current Trends in Social Networking: Large Players, Niche Sites and Technology Focused Sites
      • Current Economics of Social Networking Sites: Monetization Strategies and Tactics
      • Future Predictions: Top 5 Social Networking Sites
    • Topics of Focus
    • Popular Social Networking User Statistics Open 989,000 Western Canada Nexopia Open 1,500,00 Local Community and review Yelp Open 155,000,000 General (music) MySpace Open 4,000,000 Linked to Yahoo! IDs Yahoo! 360º Open 10,900,000 Blogging, networking and communities LiveJournal Open 1,000,000 Colleges Xuqa Open 8,500,000 Business LinkedIn Open 40,000,000 Blogs and "metro" areas Xanga Open 1,000,000 3D chat software IMVU Open 4,000,000 Travellers WAYN Open 1,500,000 Uses LiveJournal code GreatestJournal Open 300,000 Specific topics Tribe Open 29,000,000 General Friendster Open 800,000 Teens and colleges The Student Center Open 4,000,000 Image sharing Flickr Open 1,200,000 General (tagging) TagWorld Open 5,900,000 British teens and 20-somethings Faceparty Open 1,000,000 Toolbar-based website ratings StumbleUpon Open 16,000,000 American college and High school students Facebook Open 500,000 American high schools Sconex By invite or payment 490,000 "Dark" blogs, based on LiveJournal DeadJournal Open 25,000,000 Locating friends and family Open 40,000,000 School, college, work and the military Open 4,000,000 General (business) Passado Open 22,000,000 Schools and colleges Bebo Open 44,000,000 Owned by Google Orkut Open 627,000 Tagging 43 Things Registration Users Focus Site Registration Users Focus Site
    • Large Players
      • Myspace
      • Windows Live Spaces
      • Facebook
      • Google/Orkt
      • Yahoo collection:
        • Flickr
        • Yahoo 360
        • Delicious
    • Large Players Strongest all around offering, advertiser relationships Similar service adoption or purchase by other portals/large players No brand continuity, service integration, poor marketing Best all around service offering Yahoo Collection Consolidation of international or Niche networks, Mobile story Rolls up into other ethnic or niche site Lack of service integration International exposure Google/Orkt/Dodgeball Consolidation, organization syndication Ability to grow Growth causing to step out of Niche Niche, valuable advertiser audience, features, advanced audience Facebook International expansion, piggybacking messenger Service integration and growth on other networks Marketing, promotion, monetization Tied/integrated with key user services Windows Live Spaces Use of myspace as portal or syndication to other social networks Costing increases, next *BIG* thing Flexibility to attract users not as valuable to advertisers Critical Mass, Brand Name, Breadth of Audience Myspace             Opportunity Threat Weakness Strength Popularity Site Vertical
    • Niche Players
      • Blogging:
        • Live Journal
        • Wordpress
      • Ethnic:
        • Orkut
        • BlackPlanet
      • Boomers:
        • TeeDeeBee
      • Business and Networking:
        • Linked-In
      • Functional:
        • Flickr
        • 43 Things
      • Local/Mobile:
        • Dodgeball
        • Yelp Mobile
      • Other:
        • Xanga
    • Niche Site SWOT Usage and technology of the future Consumption patterns, carriers and net neutrality No proven current monetization Growth percentages and use Mobile Good fit into mobile and LBS products, innovation and use Local search and large portal initiatives into this area Relative decline in audience/members Attract local advertisers and direct marketing Local Integration, consolidation into larger services Monetization limbo-- no good advertiser story, no good subscription story Integration strategy prevents good monetization, unless charge for services Attract technical savvy audience and integration into other sites Functional Richness of data for targeting or integration Larger networks creating similar features Growth potential (based on a service) Viral nature and valuable demographic Business Consolidation to one large network for breadth can have large CPM value Lack of adoption by target audience Non-technical audience for large customer support/monetization issues Highly valuable advertising audience Boomers International audience use and exposure Ethnic channels on larger networks Capped growth Content and audience targeting Ethnic Add more editorial controls to make content more valuable to advertisers Can never reach critical mass as independent channels (Always seen as Niche) Content and traffic consistency and breadth Variety and volume of content Blogging             Opportunity Threat Weakness Strength Popularity Site Vertical
    • Monetization Multipliers
      • CPM-Based
      • Site Content
      • Site Reach (Unique Users)
      • Ad Size
      • Ad Placement, Ad technology
      • Targeting
      • CPA/Networks
      • Frequency Capping
      • Unique User Overlap
      • Placement Depth
      • Targeting
    • Monetization Options Google Adwords eCPM of $.10 to $1.00 Exclusively CPC based buy Minimal support overhead eCPM from $2.00 to $10.00 eCPM of $.25 to $2.00 More Optimization control via features Revenue sharing at higher %s Minimal development effort eCPM from $2.00 to 10.00 depending on content Mix of direct buys + remnant program Some Minimum guarantees Favors standard placements CPM option available No revenue sharing Ad Networks/ Optimization Direct Sales/ Agency Buys Large Campaigns 25k 500K 3MM Monthly UU’s 10MM Low optimization control Supports Non-standard placements Overhead increase for sales team Can go direct to advertisers Part of upfront buying process Usually vertical specific No revenue guarantees CPA, CPC Mixed buy Recommended use of Analytics Custom advertising product stream Increase in CPM sell-through Need Ad Serving technology platform
    • On Line Video Monetization Options
      • In Stream
      • Pre-Roll
      • Post-Roll
      • Display Ads in player
        • Image-based
        • Rich Media
        • Search/Performance
      • Customized experiences (in Flash Player)
    • Video Monetization User Generated Content CPM of $1.00 to $10 No editorial control No sales verticals CPM up to $200 CPM of $5 to $25 More unified advertising experience Higher quality user-generated content Lower Sell Through CPM of $7 to $50 Clear verticals Revenue sharing through a technology provider Mid-stream. Pre-roll most popular Broadcast quality content Volume and Breadth Syndication Content Premium Content Ads as Content $5 $12 $40 Average CPMs $100 Breadth with less context Lower Quality Ability to layer targeting, increasing CPMs Can go direct to advertisers Infomercial-type content 100% sell through Heavy use of player ad More editorial controls and content quality Becomes a content channel Traffic direction from portal or other vehicle Traffic direction from portal or other vehicle
    • 5 Trends for 2007
      • Continued difficulty for monetization for social networks
      • 2 large social network consolidations
      • Social networks as marketing tools
      • Improved monetization options in video space via content distribution
      • Decrease of user generated video clips of copyrighted material
      • About GLG Institute
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      • GLGi hosts hundreds of Seminars worldwide each year.
      • GLGi clients receive two seats to all Seminars in all Practice Areas.
      • GLGi’s website enables clients to:
        • Propose Seminar topics, agenda items and locations
        • View and RSVP to scheduled and proposed Seminars
        • Receive a daily briefing with new posts on your favorite tickers, subject areas and from trusted Council Members
        • Share Seminar details with colleagues or friends
      • Gerson Lehrman Group Contacts
      • Nick Goodman
      • Vice President
      • Gerson Lehrman Group
      • 850 Third Avenue, 9th Floor
      • New York, NY 10022
      • 212-750-1878
      • [email_address]
      • Christine Ruane
      • Senior Product Manager
      • Gerson Lehrman Group
      • 850 Third Avenue, 9th Floor
      • New York, NY 10022
      • 212-984-8505
      • [email_address]
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