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Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
Social Networks Monetization
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Social Networks Monetization

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

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

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  • 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
  • 3.  
  • 4.  
  • 5. Myth#2 Social Networks are only for teens so who cares?
  • 6.  
  • 7.  
  • 8.  
  • 9.  
  • 10.  
  • 11.  
  • 12.  
  • 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>
  • 18.  
  • 19.  
  • 20.  
  • 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
  • 26.  
  • 27.  
  • 28. Reality#3 Profitability is and will be hard to get
  • 29.  
  • 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
  • 36.  
  • 37. Opportunity#3 Games and entertainment
  • 38.  
  • 39. Opportunity#4 Geographical extension
  • 40.  
  • 41. Opportunity#5 Connect to Reality
  • 42. Opportunity#6 Payment/MicroPayment / eCommerce
  • 43. Opportunity#7 Enterprise
  • 44.  
  • 45. Opportunity#8 Beyond Business and Money
  • 46.  
  • 47.  
  • 48. Contributors to this presentation All sources and references on http://sites.google.com/site/presentationsns/

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