Social Networks Monetization

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How social networks are (trying) to make money. where is the business in this industry?

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Social Networks Monetization

  1. How social networks are (trying) to make money myths, reality and opportunities ouriel.typepad.com
  2. Myth#1 Except Facebook and MySpace there is not so much to talk about
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  5. Myth#2 Social Networks are only for teens so who cares?
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  13. Myth#3 Social Networks are not making any money
  14. <ul><ul><li>MySpace 750 million dollars </li></ul></ul><ul><ul><li>Facebook 350 million dollars </li></ul></ul><ul><ul><li>Cyworld 220 million dollars  </li></ul></ul><ul><ul><li>Mixi 100 million dollars </li></ul></ul><ul><ul><li>Flickr 55 to 120 millions dollars </li></ul></ul><ul><ul><li>LinkedIN 100 million dollars (and profitable) </li></ul></ul><ul><ul><li>Xing 45 million dollars </li></ul></ul><ul><ul><li>YouTube 200 million dollars (not really a SN) </li></ul></ul><ul><ul><li>Digg 20 million dollars </li></ul></ul>Show me the money
  15. BUT..money is not for everyone, yet <ul><ul><li>Twitter >>>>>> 0 dollars </li></ul></ul><ul><ul><li>MyBlogLog >> 0 dollars </li></ul></ul><ul><ul><li>Delicious >>>> 0 dollars </li></ul></ul><ul><ul><li>FriendFeed >> 0 dollars </li></ul></ul><ul><ul><li>Last.fm >>>>>> x dollars </li></ul></ul>
  16. Reality#1 The 4 revenue streams
  17. #1Advertising <ul><li>Traditionnal ads </li></ul><ul><li>Social ads </li></ul><ul><li>Sponsoring </li></ul><ul><li>Affiliation </li></ul><ul><li>Feed advertising </li></ul><ul><ul><li>Filter </li></ul></ul><ul><ul><ul><li>Broad Ads </li></ul></ul></ul><ul><ul><ul><li>Endemic Ads </li></ul></ul></ul><ul><ul><ul><li>Demographic Ads </li></ul></ul></ul>
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  21. #2Digital goods <ul><ul><li>Hot or Not generates $7M (yearly) from sale of virtual flowers (up to $10 per flower). </li></ul></ul><ul><ul><li>Habbo (virtual world) generates $60M (yearly) from virtual goods. </li></ul></ul><ul><ul><li>Dogster – 50 million gifts sent in 2 years, gifts cost $0.25-$5. </li></ul></ul>
  22. 35 million dollars out of this, hugh!
  23. #3Membership <ul><li>Xing </li></ul><ul><li>Club Penguin </li></ul><ul><li>Second Life </li></ul>
  24. #4Premium services <ul><li>LinkedIN Jobs </li></ul><ul><li>Facebook surveys </li></ul><ul><li>Ning ad free service </li></ul>
  25. Reality#2 The attention challenge
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  28. Reality#3 Profitability is and will be hard to get
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  30. Reality#4 The birth of an ecosystem
  31. Actors making money around SNs <ul><ul><li>Widget : Slide / Rockyou </li></ul></ul><ul><ul><li>Apps : Games, Lending Club </li></ul></ul><ul><ul><li>Ad networks : OfferPal, Super Rewards </li></ul></ul><ul><ul><li>Services on Services : sms for Twitter </li></ul></ul><ul><ul><li>Consulting : Agencies, Freelance, bloggers </li></ul></ul><ul><ul><li>Back Office: moderation / spam tool providers </li></ul></ul>
  32. Opportunity#1 Current Search is useless
  33. How would you describe social search? Marissa Mayer: We believe social search is any search aided by a social interaction or a social connection…
  34. Opportunity#2 Mobile
  35. 52 billion USD by 2012
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  37. Opportunity#3 Games and entertainment
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  39. Opportunity#4 Geographical extension
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  41. Opportunity#5 Connect to Reality
  42. Opportunity#6 Payment/MicroPayment / eCommerce
  43. Opportunity#7 Enterprise
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  45. Opportunity#8 Beyond Business and Money
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  48. Contributors to this presentation All sources and references on http://sites.google.com/site/presentationsns/

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