Insights from 200 Social Networks on Monetization
•Download as KEY, PDF•
33 likes•1,862 views
Our team has spent the last 6 months interviewing 200 social networks on the topic of monetization, engagement and member acquisition. Key insights: • 95% are struggling to monetize • Traditional revenue sources are drying up • Performance based revenues are increasing • Sharp rise in revenue from virtual goods, gaming and integrated partnerships • Premium membership = premium content • Member acquisition is getting harder
Recommended
Recommended
More Related Content
Recently uploaded
Recently uploaded (20)
Featured
Featured (20)
Insights from 200 Social Networks on Monetization
- 1. monetization engagement member acquisition social networks, online communities and groups
- 2. purpose... connect the developing world to the developed world through leaders of online communities and groups
- 3. I strongly believe... online communities & groups are and will democratise the world in every way, shape and form
- 4. 5 years of research... 2004 - 2006 Groups + premium groups in XING 2006 - 2007 Indexing over 1,000 social networks and 500,000 groups 2007 - 2008 Indexing conversations from millions of facebook public groups 2008 - 2009 Started interviewing social networks & mega niche online communities globally for Linqia marketplace
- 5. over 6 months... 193 hours interviewing 193 social networks
- 6. key insights... 95% are struggling to monetize Traditional revenue sources are drying up Performance based revenues are increasing Sharp rise in revenue from virtual goods, gaming and integrated partnerships Premium membership = premium content Member acquisition is getting harder
- 8. advertising
- 11. sponsorship http://www.flickr.com/photos/soulcookie/87897327/
- 13. market research/ sale of data
- 14. events http://www.flickr.com/photos/techcocktail/3297456651/
- 15. marketplace (jobs, services, items) http://www.flickr.com/photos/zerok/2966411067/
- 16. virtual currency + goods http://www.flickr.com/photos/will-lion/3121876159/
- 17. sale or IPO http://www.flickr.com/photos/travel_aficionado/2396814840/
- 18. content http://www.flickr.com/photos/polvero/3425248707/
- 19. content Video Sponsorship Photos Editorial Affiliate Documents (% of sales) Presentations Performance Coupons (CPM, CPC, CPM) Audio Games Surveys/ polls
- 20. indirectly http://www.flickr.com/photos/jannem/449271968/
- 21. indirectly increase in sales new partners & new customers suppliers new hires support: retention loyalty: retention market research innovation team retention http://www.flickr.com/photos/jannem/449271968/
- 22. and unfortunately... some don’t! http://www.flickr.com/photos/mslivenletlive/490552618/
- 23. ingredients to monetize quality members compelling content members engagement moderation adnetworks focused offering relevant affiliates high level of trust brands success measures communication tools buyer track record integration points open to 3rd parties
- 24. what if a community isn’t interested in making money?
- 25. Incentives could include… Videos Music Photos Events Things Surveys Expertise Members Editorial Discounts Vouchers Games 90% of social networks state the offering must first benefit their members, protect their credibility & be easy to integrate.
- 27. Contact Details Twitter: Maria Sipka Founder/ CEO @mariasipka www.linqia.com www.themoderatorcommunity.com Tel: +34 626768788 maria.sipka@linqia.com Barcelona | Geneva | Silicon Valley
Editor's Notes
- 95% are struggling to monetize First movers such as XING, Habbo and Piczo are generating revenue and profits Super smart entrepreneurs with direct marketing, subscription or content backgrounds are monetizing Numerous copycat communities have either shut down or on the brink of shutting down or running out The majority though - mega niche communities online and mobile with really compelling offerings are struggling Traditional revenue sources are drying up All communities with the exception of those who refuse to integrate any form of adnetwork are experiencing sharp declines in CPM rates Due to the sheer quantity of active members, there’s not enough inventory to service the billions of monthly page impressions And most importantly, advertisers are not experiencing the ROI that most adnetworks were claiming to achieve - people are not interested in clicking on ads with 0.002% conversion rates Performance based revenues are increasing There’s no shortage of performance based opportunities Adnetworks and affiliate networks offer attractive cost per click and cost per lead opportunities The more niche an active group of people surfaces, the higher the advertiser is willing to pay Sharp rise in revenue from virtual goods, gaming and integrated partnerships Social networks performing extremely well - namely a handful of Virtual communities such as Habbo, Gaia & Second Life + Asian social networks such as Tencent who generated 1 billion in sales - 90% through virtual goods A German sporting social network I spoke with last week shared how they generated 200k in the first year primarily through premium memberships and integrated partnerships. Nike paid them €8,000 for a 2 week campaign which received 1,000 clicks - €8 per click Habbo is by far the leader in integrating partnerships. With 7 years experience they present members with experiences from MTV, Nike, Harry Potter, ING in Netherlands Member acquisition Early movers were fortunate to experience a rush in new quality members. If you were to launch a new business, student, exclusive/ VIP network it would be tough. People are loyal to XING, LinkedIN, StudiVZ, Facebook, ASW. All of these are quite generic, broad communities with deeply entrenched friendships and past activity. The real opportunity lies in offering something niche and unique. Something extremely focused such as a community for nurses, soldiers, HR, CEO, student golfers, etc
- Communication tools • Email • RSS • SMS • Desktop alerts Integration points • Widgets • Forums • Video, audio, image containers • Microsites/ pages Open to 3rd parties • Abiding by t&c’s of social networks • Abiding by t&c’s of company • Accepted by members