Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković


Published on

EURAXESS Conference in Dubrovnik, April 2013: Workshop Marketing Strategies and Social Media

Published in: Technology, Business
  • All presentations from the workshop:

    1. Introduction to WS Marketing Strategies & Social Media

    2. Group work

    3. Social Broadcasting vs. Traditional Online Advertising

    4. The Facebook ABC

    5. Meet the 'social' researchers

    6. 'Social EURAXESS' Guidelines for Facebook

    7. Post lunch challenge exercise

    8. Case study: EURAXESS - Research in Estonia
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

  1. 1. Social broadcasting vs.traditional online advertisingMilan Zdravković
  2. 2. How online advertising works?Popular websiteAdAdSocial networkAdAdSearch engineAdAdCustomerAdvertiseror agencyOnline advertising revenue models
  3. 3. Online advertising revenue models◦ Advertisers pay– Cost per 1000 impressions– Cost per targeted visitor– Cost per view– Cost per click– Cost per action (e.g. signup, purchase) or conversion◦ Cost per conversion is cost of acquiring the customer –dividing the total cost of ad campaign with the number ofconversionsProblem
  4. 4. Problem: people do not trust advertisersPeople trust in advertising
  5. 5. People trust in advertisingSolution – Online advertising is going social
  6. 6. Solution: online advertising is going social◦ Online ads– 1 of 1000 visitor clicks ononline ad to be taken awayfrom a page◦ In-text advertising– Advertisers pay forkeywords within an article,to be hyperlinked◦ Online ads with social networkwidget– Consumers spend moretime and click more oftenly(35 of 1000 visitors)Example: Shop socially
  7. 7. Example: ShopSocially◦ Consumer-to-consumermarketing platform forretailers◦ Users can ask shoppingquestions and share theirpurchases (andrecommendations) with(Facebook) friendsNetwork effect
  8. 8. Network effect◦ In economics and business, a network effect is theeffect that one user of a good or service has on thevalue of that product to other people– When network effect is present, the value of aproduct or service is dependent on the number ofothers using it◦ The more users a website attracts, the more otherswill want to use it– This creates a natural monopoly and it is amagnet for advertisers– The network effect could go reverse - MySpaceWhat is virality?
  9. 9. What is virality?◦ “An object, even an immaterialobject, is considered to be viralwhen it has the ability to spreadcopies of itself or change othersimilar objects to become more likeitself when those objects are simplyexposed to the viral object”◦ To “go viral” is the ultimate goal ofmost online content (e.g. videos,blog posts)◦ Virality creates a potentiallyexponential growth in themessages visibility and effectHow virality helps startup pages?
  10. 10. How virality helps startup pages?◦ If one Facebook page has 100 “likes”, then anyaction by the owner on the page itself will beimmediately and clearly visible to 100 users.◦ However, if all these users take an action on thisvery content then this content (and a page itself) willappear in the news-feed of all of their “friends” intotal.◦ Obviously, even a page with such a low subscriptionrate may have extremely high visibilityVirality on Facebook
  11. 11. Virality on Facebook◦ The percentage ofpeople who havecreated a story fromyour Page post out ofthe total number ofunique people whohave seen itMedian virality of the Facebook pagepost (sample of 10.000 pages)Internet meme
  12. 12. Internet meme◦ A concept that spreads from person to person viathe Internet– Instant communication on Internet facilitates wordof mouth transmission◦ An Internet meme may take the form of an image,hyperlink, video, picture, website, Facebook post orhashtag– These tend to spread from person to person viasocial networks, blogs, direct email, or newssources◦ An Internet meme may stay the same or may evolveover timeMore doubts?
  13. 13. Do you still have some doubts?◦ As of 2009, two thirds of the worlds Internetpopulation visits a social network or blog site at leastevery week◦ In 2009, time spent visiting social media sites beganto exceed time spent emailing◦ A 2010 study found that 52% of people who viewnews online forward it on through social networks,email, or posts◦ Today, Facebook alone has around 1 billion activeusers
  14. 14. Now, about Facebook