Social Networks Monetization

How social networks are (trying) to make money myths, reality and opportunities ouriel.typepad.com

Myth#1 Except Facebook and MySpace there is not so much to talk about

Myth#2 Social Networks are only for teens so who cares?

Myth#3 Social Networks are not making any money

MySpace 750 million dollars
Facebook 350 million dollars
Cyworld 220 million dollars
Mixi 100 million dollars
Flickr 55 to 120 millions dollars
LinkedIN 100 million dollars (and profitable)
Xing 45 million dollars
YouTube 200 million dollars (not really a SN)
Digg 20 million dollars
Show me the money

BUT..money is not for everyone, yet
Twitter >>>>>> 0 dollars
MyBlogLog >> 0 dollars
Delicious >>>> 0 dollars
FriendFeed >> 0 dollars
Last.fm >>>>>> x dollars

Reality#1 The 4 revenue streams

#1Advertising
Traditionnal ads
Social ads
Sponsoring
Affiliation
Feed advertising
Filter
Broad Ads
Endemic Ads
Demographic Ads

#2Digital goods
Hot or Not generates $7M (yearly) from sale of virtual flowers (up to $10 per flower).
Habbo (virtual world) generates $60M (yearly) from virtual goods.
Dogster – 50 million gifts sent in 2 years, gifts cost $0.25-$5.

35 million dollars out of this, hugh!

#3Membership
Xing
Club Penguin
Second Life

#4Premium services
LinkedIN Jobs
Facebook surveys
Ning ad free service

Reality#2 The attention challenge

Reality#3 Profitability is and will be hard to get

Reality#4 The birth of an ecosystem

Actors making money around SNs
Widget : Slide / Rockyou
Apps : Games, Lending Club
Ad networks : OfferPal, Super Rewards
Services on Services : sms for Twitter
Consulting : Agencies, Freelance, bloggers
Back Office: moderation / spam tool providers

Opportunity#1 Current Search is useless

How would you describe social search? Marissa Mayer: We believe social search is any search aided by a social interaction or a social connection…

Opportunity#2 Mobile

52 billion USD by 2012

Opportunity#3 Games and entertainment

Opportunity#4 Geographical extension

Opportunity#5 Connect to Reality

Opportunity#6 Payment/MicroPayment / eCommerce

Opportunity#7 Enterprise

Opportunity#8 Beyond Business and Money

Contributors to this presentation All sources and references on http://sites.google.com/site/presentationsns/

http://ouriel.typepad.com	188
http://satpal.wordpress.com	171
http://www.erwinblom.nl	52
http://www.slideshare.net	40
http://thejourneybeginsin54321.blogspot.com	37
http://www.marketinginnovatie.org	18
http://modelosdemujeres.blogspot.com	10
http://lifeinsideout.tumblr.com	7
http://taitran.tumblr.com	6
http://thejourneybeginsin54321.blogspot.de	5
http://linkhay.com	5
http://static.slideshare.net	4
http://thejourneybeginsin54321.blogspot.in	4
http://thejourneybeginsin54321.blogspot.ca	3
http://www.bounceit.net	3
http://www.linkedin.com	3
http://bounceit.net	3
http://eembizdev.blogspot.com	2
http://mansitrivedi.tumblr.com	2
http://mydigitalwhiteboard.tumblr.com	2
http://webcache.googleusercontent.com	1
http://thejourneybeginsin54321.blogspot.com.au	1
https://twimg0-a.akamaihd.net	1
http://www.mansitrivedi.com	1
http://safe.tumblr.com	1

Social Networks Monetization

by Ouriel Ohayon

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