Web 2.0 fails to produce cash


Published on

Web 2.0 fails to produce cash?!?

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Web 2.0 fails to produce cash

  1. 1. © Gone Fishing Where is the Money? €€€ Presented by John Lindsay, CEO WON, June 2008 Expand With Result
  2. 2. What is Social Media Anyway? Social media is an umbrella term that defines the various activities that integrate technology, social interaction, and the construction of words, pictures, videos and audio [conversations]*. This interaction, and the manner in which information is presented, depends on the varied perspectives and quot;buildingquot; of shared meaning among communities, as people share their stories [user generated]*, and understandings. Wikipedia The Behavior is the Medium * My addition.
  3. 3. Conversation & Brands “The era of Transaction Brands is giving way to Relationship Brands” Thomas Gad, father of the Nokia brand member of Result Strategy Group
  4. 4. How do you commercialize Conversations? FT: Web 2.0 fails to produce cash Many members of the Web 2.0 generation of internet companies have so far produced little in the way of revenue, …The shortage of revenue among social networks, blogs and other “social media” …. has persisted despite more than four years of experimentation aimed at turning such sites into money- makers. … the failure has damped the mood in internet start-up circles. “There is going to be a shake-out here in the next year or two..” said Roger Lee, a partner at Battery Ventures “If you look at some of the valuations, you wonder what fantasy of revenues they’re based on,” said Mitchell Kertzman, VC Hummer Winblad. By Richard Waters and Chris Nuttall in San Francisco,Published: May 26 2008 19:18 | Last updated: May 26 2008 19:18
  5. 5. 4 Plays for Profit from Social Media Play 1: Me & You: The User Business & smart integrators Personal users Play 2: Community builders b2b b2c Play 3 Community enablers: Utilities OTT (over the top) Under the Hood (UTH?) Social Ad Agencies – “ The Connected Agency”
  6. 6. Play 1: Personal My 1st Million Euro Deal in 7 days of joining Xing 1. Biz Dev. Instant access to people globally 2. Info: Request opinion & Advice from people I trust i.e. purchasing, technology, people 3. Build presence, place to be found, “yellow pages” Other tools: • Blog & Groups/Forums • Netvibes – productivity • Twitter • Belysio Will Try: • Friendfeed • CoCommment
  7. 7. Business User – Social Widget Ads Web 2.0 Ads have gone mainstream “When you have one mom talking to another, it’s powerful,” Ms. Johnson, Marketing, said. “So we’re offering them information and tools and activities; we’re not in their face with advertising.” Kimberly-Clark intends to devote about 35 percent of its overall marketing spending this year to nontraditional media like the Internet, said a spokesman, Joey Mooring, compared with about 25 percent in 2007 and 10 percent in 2004. BUT: Traditional Agencies struggle to master this kind of campaigning
  8. 8. Trend: Deportalisation GEEWA Multiplayer games Bring multiplayer games to my personal profile on MySpace • A way to meet people Reference Selling Brands i.e. cars Message: Trust Sells
  9. 9. Business User – Behavioral Targeting = HOT! Relevant Traffic = profit / value The ability to score each visitor on the basis of the quality of his visit behavior in Real Time Any other kind of measurement numbers like hits, clicks, time spent… on their own, reveal nothing about VALUE or RELAVANCY Every social Medium needs to convert traffic into actionable business intelligence with real time AI analytics systems. This is a new frontier. Catching the Big Fish €
  10. 10. Business User – Behavioral Targeting converting behavior into € Classic Analytics tells you to spend here: Volume of Hits BT Analytics Shows you to Spend the money here 3D View of Quality Behavior
  11. 11. Play # 2 Communities B2B B2C
  12. 12. Communities – B2B Function: Personal Resource Planning & Productivity (PRP) or Social Walled Garden / open / semi-open Strategy: • Utility • Winner takes all • Niche Local or global Profit: Membership / ad supported / utility fees for services
  13. 13. Play 2: Communities B2C: Go East Ok – So you want to go for the Big bucks – Right? QQ chips have are so popular they are a second currency in China
  14. 14. Play 2: B2C Communities Big Valuations too. “Fantasy” or Reality?
  15. 15. Play 2 - B2C Community - Stardollars. You don’t have to go East to make it big Community of Paper doll collectors From unemployment at 50+ to generating €1 Million per day
  16. 16. Play # 3 Utilities B2C B2B
  17. 17. Play 3 – Utilities Mobile Mobile advertising would make more money than advertising on the traditional web in a few years Google CEO Eric Schmidt 40% of Mobile web traffic today is driven by Social Networks…providing value insight into consumer preferences. 11. million Opera users consumed 33 MB data, a growth of 88% in one quarter Report from Opera
  18. 18. Play 3: Utilities – OTT Mobile Social networking will fundamentally change as your device knows who’s around you, for example. The reason why mobile devices will become so important - they’ll help us (and our friends, and maybe everyone) know where we are at all times, driving social, advertising and other applications. Being location aware is the single most important feature in a mobile device Belysio is an example of Over The Top Solution (OTT)
  19. 19. Play # 4 Social Advertising Agencies Creative Technology
  20. 20. Play 4: “Social” Advertising Agency The Opportunity for Agencies – community operators & utility services “…. marketers [fail to] engage with consumers who, as a result, are becoming less brand-loyal and more trusting of each other. To turn the tide, marketers will make the shift: • from making messages to nurturing consumer connections; • from delivering push to creating pull interactions; • from orchestrating campaigns to facilitating conversations. Over the next five years, …[agencies & marketeers will] make this shift… by connecting with consumer communities and will eventually become an integral part of them.quot; Forrester report on The Connected Agency 2008
  21. 21. Summary Comments
  22. 22. Best Practices Profit Models: To Avoid the “Fantasy” Business Models Ads Digital goods Monthly Fees Alerts Value added services - utilities
  23. 23. Best Practices Provide Real Value: Features = Value proposition 1. Purpose: Closed/ wide open/Semi-closed 2. Growth: Invitations Systems 3. Compelling: Sticky Features 4. Access: Cross-channel – mobile, on-line, off-line, iPTV… print 5. Filter: for relevancy and trust 6. Simplify Integrating different parts into one whole; productivity tools 7. Interoperability, compatibility – let systems talk openly to each other - APIs “Pain of Adoption” Test – is it higher or lower than the solution you are replacing?
  24. 24. Best Practices: Success Factors 1. Focus 2. Values 3. Atmosphere 4. Demographics 5. Behavior made tangible = wealth potential
  25. 25. Opportunities = Broken Process 1. Privacy 2. Authenticity - ID / identities = Trust 3. Trust Systems 4. New Value Chains 5. “Conversation-optimized” across platforms. 6. Transaction Ease: Payment Infrastructure – on-line, mobile, off-line store 7. Wealth distribution versus concentration – P2P, pay for behavior exploitation Democratization of capital? .
  26. 26. 4 Plays for Profit from Web2.0 Play 1: Me & You: The User In the gold rush the Personal users sellers of pick axes Business & smart integrators and shovels made the real money Utilities are required Play 2: Community builders for Plays 1, 2 and 4. b2b b2c Play 3 Community enablers: Utilities OTT (over the top) Under the Hood – supporting community functionality, services Social Ad Agencies – “ The Connected Agency”
  27. 27. Conclusion: Where is the money? When Social Media Monetizes behavior it becomes Social Commerce. …All good business is driven and defined by the social dimension
  28. 28. About WON Recycling waste into Growth Business innovation integration to: Focus vision & execution Internationalization & expansion Improve marketing effectiveness & accountability Global HQ - Belgium Group presence 12 countries, 12 partner companies, 50 professionals Expand with Result www.Result.com Contact: John Lindsay, Managing Director, WON bvba D IGITAL John.lindsay@wide-open-networks.com +32.478.338.555 AVEN U E
  29. 29. Contributors: © Gone Fishing •Gert-Jan Van Engelen, master product marketing, artist, SparkWorks partner • Dan Romescu, mobile CTO, Sparkworks partner • Bob Stumpel, master blogger, result • Maria Sipka, community to change the world Presented by John Lindsay, CEO WON, June 2008 Expand With Result