Social network : definition A social network is a social structure made up of individuals (or organizations) called "nodes", which are tied (connected) by one or more specific types of interdependency, such as friendship, kinship, common interest, financial exchange, dislike, sexual relationships, or relationships of beliefs, knowledge or prestige. Social network analysis views social relationships in terms of network theory consisting of nodes and ties (also called edges, links, or connections). *Source: http://en.wikipedia.org/wiki/Social_Networks
Forums are typically comprised of people with a similar interest. Users have conversations around a particular given topic and build up relationships with each other. They provide a great deal of information about a topic and is a great way to share your knowledge.
People like to journal, and with the internet they wanted to share their lives more openly. Originally called web-logs, these personal journals have advanced. Some personal journals still exist, while other blogs discuss a particular niche or interest.
These sites can share what is going on in an individual life or can be information the individual wants to share. Major news events are now breaking online via microblogs. The best known microblog is Twitter.*Article Source: http://EzineArticles.com/4019476
Social Networking Sites are known for sharing of information, in this case photos. Users upload their pictures to Photo Sharing Sites. Rather than having to send individual pictures to family, you send a single link. You can tag your photos with keywords related to the image and allow people to comment. Some popular photosharing sites are Flickr and Picasa.
YouTube is the video sharing site that almost everyone has seen. Videos are shared online, keywords are added so people can search for those terms or for the video title. People can comment if the video owner allows.
Networking has long been touted as an asset in professional circles. Networking allows the person to connect with people and by those connections meet other professionals that person knows. Professional social media allows for that type of opportunity online. Thus if you move away from your home town you can still remain connected to your ex-coworkers and others in your profession. Linked In is one of the top professional social networking sites. *Article Source: http://EzineArticles.com/4019476
Social networking sites are about being social, so there are sites purely for allowing users to stay in touch with people whom they know. For example: myspace,orkut,facebook.
The major purpose of these social networking sites is the sharing of information. If you read a web page that is interesting, informative, or inspirational you may choose to bookmark it. By doing this you are saying that you like it. Your friends will learn what you liked and can choose to read it. Pages that many people bookmark become popular and drive others to that page as well. Digg, Delicious, and StumpleUpon are very popular bookmarking websites. * Article Source: http://EzineArticles.com/4019476
Revenue Model Premium Service: LinkedIn which has Business ($19.95/month), Business Plus ($50/month) and Pro Accounts ($200/month) Advertisements – CPC, CPA, CPM Micropayments – Users start buying add-ons with small amounts of money Partnerships – iTunes and Facebook, Simply Hired and LinkedIn
Branding elements with an application – Big brands like Porsche make use of Living Social app for viral marketing. Porsche will pay $5CPM for Newsfeed sharing among users.
Virtual Currency – 10 of top 15 facebook are games. On any day 500,000 tractors are sold to 63.4 million Farmville users. 2009 revenue was nearly $100 million.
Virtual Gifts – Digital birthday cards, flowers. Ning virtual gifts.
Surveys – Firms pay members to participate in surveys and profit from selling access to its successful audience.
Facebook Revenue Advertising is the main source The current minimum CPC is $0.01. The current minimum CPM is $0.02 USD for the Ad Space. Facebook has a low click through rate for ads. Google averages 8% (80000 clicks per million searches), Facebook 0.05-0.4%, MySpace 0.1% Low facebook CTR attributed to Ad Blocking Software and young users who favor communication with friends more than content
Buyer power is high, the advertisers and the premium users may get same services from other SNS
Supplier (Visitor) power is high because there are many other existing SNS
Threat of substitutes is high as there are several options for the visitor
Threat of new entrants is high since innovation is the key
Rivalry is very high among the existing competitors
SNS have seen an exponential increase in traffic in the recent years and this trend is going to continue for the years to come. For SNS to be successful, innovation is the key!
People are becoming more tech savvy with increased internet penetration and due to busy and hectic life styles, SNS are best way to socialize with friends, acquaintances, clients as well as professional links.
SNS provide collaboration at a very high level which is the key to succeed in the fiercely competitive world.
SNS provide an invaluable and cost-effective channel to marketers to do a focused marketing campaigns as well as getting important marketing research insights.