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![Brands have both more and less control
Owned vs. earned vs. paid media
Owned: Created/controlled by business
Earned: Shared by press and public
Paid: Sponsored content/advertising
“If [Facebook’s] News
Feed is the thing that
everyone sees and it
controls how
information is
disseminated, it’s
controlling how
information is revealed
to society, and it’s
something we need to
pay very close
attention to.”](https://image.slidesharecdn.com/socialmediaeconomy-140213082421-phpapp01/75/The-Economics-of-Social-Media-38-2048.jpg)
Uploaded byBen Rubenstein
The Economics of Social Media
The document discusses the economics of social media, including current business models, market expectations, and how companies utilize social media to enhance their business. It covers the challenges faced by businesses and users, the impact of the long tail concept, and various revenue generation models such as advertising and subscriptions. Additionally, it highlights the evolving role of social media in marketing, customer service, and entrepreneurship while examining the balance between business objectives and user experience.
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The Economics of Social Media
- 1. The Economics ofSocial Media Ben Rubenstein
- 2. About me SeniorManager, Social Media & Online Community at TechTarget Past: Not a guru, ninja or sage (or an economist)
- 3. Overview The (current) businessof social media Existing business models Expectations for the market Social media as a tool for other businesses How companies are using social media to build business Challenges for businesses and users New business models Sharing/collaborative consumption examples The future?
- 4. Web 2.0 =social media? Wide reach Data-driven User-centric Perpetual beta Multiple devices
- 5. How ‘the longtail’ applies to social Wide range of content available Participation is spread out along a scale Niche communities are just as important as the mainstream Targeted recommendations (human or machine) drive action
- 6. The (almost) currentlandscape
- 7. Social media: Agood investment?
- 8. Social Media: Hypeor Hope?
- 9. Highs and Lows •2010: Rejects Google’s $6 billion offer • 2012: $5.8 billion valuation • 2013: $7.3 billion valuation
- 10. Highs and Lows •2013: Rejects Facebook’s $3 billion offer • 2014: Snapchat hacked • 2015: ???
- 11. Business models (notmutually exclusive) Advertising Virtual Goods Freemium Subscription
- 12. Advertising Leveraging the LongTail Native or not
- 13. Virtual goods Real moneybuys fake things within the free experience
- 14. Freemium Base product isfree, extra features (or fewer ads) will cost you
- 15. Subscription (Premium) You haveto pay to play
- 16.
- 17. How do Facebook/Twittermake money? What model(s) does Facebook use? What about Twitter? What opportunities are there to expand? What are the risks?
- 18. The ‘real’ product “Ifyou’re not paying for the product, you are the product” – Anonymous internet pundit A social network’s real value = Number of users?
- 19. Why am Iseeing these ads?
- 20. Why am Iseeing these ads? “Facebook has collected the most You are being watched extensive data set Data mining based on your profile + posts ever assembled on Retargeting from sites you’ve visited human social Buying a coat? Buying a car? Facebook knows behavior.” all
- 21. You make yourselfa target
- 22. You make yourselfa target
- 23. Your friends makeyou a target For Advertisers
- 24. The power ofthe social graph
- 25. Take a break Visityour favorite social network: What ads do you see? What are they for? How did they get there?
- 26. The “thank you”economy
- 27. Who participates inthis new economy? Businesses – you don’t exist if you’re not on social media (Content) Marketers – every brand is now a publisher Customer Service – problem solving Data Analysis Customers – what makes it all work
- 28. Every network isa new opportunity for… Marketing
- 29. Every network isa new opportunity for… Sales
- 30. Every network isa new opportunity for… Entrepreneurship (and Self-Promotion)
- 31. Every network isa new opportunity for… Customer Service Cut out call centers Create a ‘human’ face for the brand
- 32. Every network isa new opportunity for… Data Mining Understand what people care about Build new business from that data
- 33. Every network isa new opportunity for… Data Mining
- 34. Every network isa new opportunity for… #Fail
- 35. Every network isa new opportunity for … So Much #Fail
- 36. Every network isa new opportunity for… Scamming
- 37. Every network isa new opportunity for… Scamming
- 38. Brands have bothmore and less control Owned vs. earned vs. paid media Owned: Created/controlled by business Earned: Shared by press and public Paid: Sponsored content/advertising “If [Facebook’s] News Feed is the thing that everyone sees and it controls how information is disseminated, it’s controlling how information is revealed to society, and it’s something we need to pay very close attention to.”
- 39. Can businesses andusers coexist? Business objectives Pressure to make money = more advertising If users leave, no more business opportunity User experience
- 40. Your turn Find abrand you like on social media. What marketing efforts do you see? What’s their persona? Are they successful? How can you tell? Why would you follow them? Deals, customer service, humorous content?
- 41. Social creates newbusiness models How does social media support the “collaborative consumption” economy? What new opportunities and challenges does this economy create? What are some examples of participants in this new economy?
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- 47. ???? What social businessopportunities have yet to be realized?
- 48. Recap Lots of hype,but some hope for social media businesses Social supports existing business models – with good execution Social creates new business opportunities With every opportunity, there is a tradeoff
- 49.
Editor's Notes
- #7 We’ll focus on the big boys for this discussion, but be thinking about the smaller upstarts, too I say this is (almost) current because probably minutes after this was created, some new social network launched This is more evidence of the ‘long tail’ –social media creating and supporting niche communities who previously would not have had an outlet; those are markets (truly an age of abundance)
- #8 Quick reactions to this video? Would you invest in social?
- #14 Farmville Facebook Gifts Have you ever bought something in a game?
- #23 Does this bring up privacy concerns? Facebook Ads – Can get very specific, target any niche Pricing changes depending on targeting (the long tail)
- #32 Some companies do a great job of responding to customers via social media – this looks good for them and can also save them some money if they do it right Ever interacted with a company via social?
- #36 Breaking norms, big fails