Future social spaces Social space(s) Evolving fast
So with all this traffic, they’re raking it in?
WRONG! Whilst revenue are high, facebook making loss despite revenues of $300m in ’08 YouTube - losing $1.65m per day. (Techcrunch) Twitter- Still no business model or real revenues Yahoo with a similar visitor volume to facebook and has revenues of over $7bn. (Yahoo) Wrong
And it costs a fortune, right? <ul><li>Partners / sponsors </li></ul><ul><li>Tactical Advertising </li></ul><ul><li>Subscription for premium content </li></ul><ul><li>UGC submission </li></ul>
And it costs a fortune, right? Added value Real-time research / feedback Word-of-mouth advocacy Cost of standing still
Return on Investment Tencent a chinese social networking platform with a completely different business model. Tencent’s network makes $1.2 billion in revenue. Only 12% of that is from web advertising
The future: small is beautiful Niche communities built either by or with the help of corporate sponsors More professional content More engagement More fun