The Million Dollar Homepage is a website conceived in 2005 by Alex Tew, a student from Wiltshire , England, to raise money for his university education. The home page consists of a million pixels arranged in a 1000 × 1000 pixel grid; the image-based links on it were sold for US$1 per pixel in 10 × 10 blocks. The purchasers of these pixel blocks provided tiny images to be displayed on them, a URL to which the images were linked, and a slogan to be displayed when hovering a cursor over the link. On 1 January 2006, the final 1,000 pixels were put up for auction on eBay. The auction closed on 11 January with a winning bid of $38,100 that brought the final tally to $1,037,100 in gross income (for five months).
Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković
Social broadcasting vs.traditional online advertisingMilan Zdravković
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
Problem: people do not trust advertisersPeople trust in advertising
People trust in advertisingSolution – Online advertising is going social
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
Example: ShopSocially◦ Consumer-to-consumermarketing platform forretailers◦ Users can ask shoppingquestions and share theirpurchases (andrecommendations) with(Facebook) friendsNetwork effect
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?
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?
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
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
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?
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