Social Media Business Models


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Social Media Business Models

  1. 1. Social Media Business Models<br />
  2. 2. Twitter Business Model<br />Advertisers<br />(Promoted Tweets)<br />Initially, advertisers will bid on keywords on a cost-per-thousand basis, but Twitter is developing a performance model that could be the basis for pricing based on a metric called "resonance" -- impact judged on how much a tweet is passed around, marked as a favorite or how often a user clicks through a posted link. Ads that perform well will stay in the system; ads that don't rise above the resonance score of a typical tweet from a marketer will fall out. <br />Twitter<br />Twitter search results will be accessible on a special section of Bing as a beta, or test product. Microsoft plans to present the most popular Tweets of the moment, while allowing Web surfers to view Twitter messages that contain links to other Web content. Microsoft will filter out spam and other extraneous data.<br />Google and Twitter have cut a deal where Google is essentially licensing a data feed from Twitter to get that information in search results.<br />How will it be presented? Google isn't ready to talk about that yet in detail, but Wright said tweets would be presented within regular search results.<br />Bing<br />Google<br />(Search Deals)<br />
  3. 3. Tencent QQ Business Model<br />TenCent QQ was founded in 1998, has 355 million users, US$1.2B in annual revenues, and a US$11.2B market capitalization. In April 2010, ranked 10th overall in Alexa’s internet rankings. The two primary drivers of revenue for TenCent are digital items and casual game packages and upgrades. Advertising, which doesn’t work well on U.S. products like IM, doesn’t work well in China either. Advertising revenues for TenCent represent only 12% of total revenues. <br />
  4. 4. Tencent QQ Business Model<br />TenPay<br />Diamond Membrshps<br /><ul><li>Red, for the QQ Show service which features the ability to make an avatar for yourself.
  5. 5. Yellow, for the Qzone service which is similar to a blog.
  6. 6. Blue, which is for QQ games.
  7. 7. Purple, which is shared between three Tencent games, QQNana, a Korean dancing game, QQTang, an action game, extremely similar to crazy arcade, and QQSpeed, a race game.
  8. 8. Pink, for QQ pet, a small desktop game about raising a pet. So far there are 3 generations of pets. Penguin, Pig, and Bear (Beta testing).
  9. 9. Green, for QQ music, which is a software for listening to music directly from the Tencent server. Requiring no pre-download, though sometimes consuming a lot of disk space due to caching.
  10. 10. VIP, for chatting, beta testing, removing advertising, and several additional features
  11. 11. Black (recently introduced) DNF, a Tencent PVP game</li></ul>Online Payment system similar to Paypal.<br />QQ<br />Virtual Goods<br />Tencent sells virtual goods for use in their MMOs, IM client, social networking sites, and for mobile phones. Income from the sale of virtual goods was a large proportion of Tencent's revenue in 2009. Tencent's online currency, Q Coins, can be used to purchase virtual goods, which range from the offbeat, such as virtual pets, and the virtual clothing, jewelry and cosmetics needed to customize online-game avatars, to the more mundane, such as more storage space, wallpapers, bigger photo albums and ring tones.<br />Advertisers<br />
  12. 12. MyspaceBusiness Model<br />MySpace Music<br />MySpace Music is like iTunes and Napster and is an online music store within the MySpace community<br />Google<br />Advertising<br />MySpace<br />Google deal for 3yrs/ $900M ends June 2010. MySpace is reportedly in talks to replace this deal with a new one from either one or several search partners.<br /><ul><li>MyAds (Self Service):
  13. 13. Small Business Advertising
  14. 14. Music and Concert Promotion
  15. 15. Comedians
  16. 16. Film Makers
  17. 17. Brand Advertising Sales
  18. 18. Considered to be second only to Yahoo! in its capacity to collect data about its users and thus in its ability to use behavorial targeting to select the ads each visitor sees.</li></ul>Virtual Goods<br /><ul><li>Site is deep diving into the games space and into mobile in 2010
  19. 19. Games – virtual goods bought in the games/ apps</li></li></ul><li>Facebook Business Model<br />Advertisers<br />(Advertising Placements)<br />(FB Payments System Integration)<br />(Payments – Vritual Goods & Gifts)<br />Facebook<br />3rd Party Sites<br />Facebook Users<br />(30% Royalty to monetize the viral marketing and distribution services that game publishers were getting for free)<br />FB Credits = $0.10 USD<br />Application Developers<br />
  20. 20. Social Media Monetization Comparison<br />Published March 9, 2009<br />