Social network sites allow members to connect and build relationships online based on shared interests or other reasons. Facebook currently has over 750 million active users. Companies can benefit from social networks by building brand awareness, finding new customers, and gaining free advertising through user-generated content and contests.

1. Chapter 10:
Social Networks
Marykate Cabactulan, Caitlin Goerlich,
Adma Ortega, Marco Recchia

2. LEARNING OBJECTIVES
•Define social networking
•Describe a brief history of social networks
•Explain the global perspective of social networking
•Identify the benefits of marketing with social networks
After completing this chapter, students will be able to:

3. LEARNING OBJECTIVES
Define a white label social networking
Explain the pros and cons of creating a white label social network
Describe how nonprofit organizations can benefit from a private social network
Summarize some predictions about the future of social networks.
After completing this chapter, students will be able to:

4. SOCIAL NETWORK SITE
Is an online service on which members can
establish relationships based on friendship,
kinship, shared interest, business advantage, or
other reasons.

5. HISTORY
❏ 1997: SixDegrees.com, one of the first Social Network sites launched
❏ 2001: Ryze.com
❏ 2003:Myspace Launched
❏ 2004: Facebook Launched
❏ 2006: 100 millionth Myspace account were created/ Twitter was created
❏ 2007 Myspace became the leading social network in the US
❏ Facebook overtook Myspace in traffic
2010: Instagram came out
❏ 2011: 750+ million active Facebook accounts

6. Popular Social Network Sites, as of December 2011
*Estimated unique monthly visitors according to eBiz|MBA Inc.
**Google Page Rank uses the number and quality of links to a web page to determine its relative importance, using a
scale of 0–10, with 10 indicating the highest rank and 0 the lowest.
***Alexa Global Traffic Rank estimates a site’s popularity, with traffic data from Alexa Toolbar users and other diverse
traffic sources, using an ascending scale where 1 represents the highest traffic rank.
Table 10.1

9. Benefits of Marketing with Social Networks
Social networking is an easy way to make promoting companies more engaging and
consumer friendly.
Companies will come up with contests (via Twitter, Facebook, Instagram, etc), which
usually calls for the consumer to endorse certain products on their social media
outlets, which basically means free-advertising.
Social Media is basically an additional channel to feature a product, just as much as
being endorsed in a catalog, commercial, or even billboards.

10. Other Advantages of Marketing with Social Networks
Building brand awareness (Starbucks cups with names)
Finding talent (Celebrities subconsciously endorsing products on Youtube, Instagram,
etc)
Finding new customers (Gaining new customers by making products versatile and
appealing for consumers who have never heard of a certain brand yet)
Helping conduct brand intelligence and marketing research (Surveying consumers via
social media on their input on certain products)

11. How do companies market on Social Media?
Many companies rely on the customers to help get their brand name across. For
example, consumers usually use “hashtags” as a way of marketing with social media
(ex: #Forever21, #Starbucks, #Chipotle). The point of hashtagging is to organize the
different brands into one. By clicking a hashtag, you are lead to other consumers’
media outlets endorsing the same product.
Company brands may also hold contests with their followers that has to do with
showing of the brand name in a way, with a prize at the end (A gift card, tickets,
vacations, etc) to make the contest more appealing and to bring the brand name
across.

12. Who is the audience?
When it comes to Social Media marketing, companies must know how to execute their
objective to the consumers without being too much of a distraction. Media outlets
must know what audiences their websites usually target.
Examples:
Facebook, Twitter, Instagram: Business - Consumer audience
LinkedIn: Business - Business audience

13. Business to Consumer (Facebook)
• To advertise a product you create a page.
– Allows fans to follow and become fans of the company
• The page needs to updated daily with new content.
– *Never update more than 3 times a day.
• To gain followers
– Links, email signatures, business cards, and outgoing
communications.
– Post contest or create discounts.

14. Business to Consumer vs. Business to Business
Business to Consumer
• Example: Facebook
• Emphasis is to create
content.
• Less serious post with more
funny and content worthy
post.
Business to Business
• Example: LinkedIn
• Emphasis is to create
connections with other
people.
• Serious with professional
post that relevant, well-
considered, and valuable
thoughts

15. Business to Business (LinkedIn)
• People do not connect with strangers or casual friends.
• It is much more broader network than just friends.
• To acquire more connections you can join groups.
• You also interact personally and not for a company.

16. 5 Mistakes with LinkedIn
1. Poor Engagement
2. The “Blah” Headline
3. The Wrong Category
4. The “Who Cares” Summary
5. Ignoring Critical Profile Areas

18. White Label Social Network
Online service that shares many, if not most, of the
characteristics of a public social network like Facebook,
with the key difference being the white label is privately
run by a corporation or nonprofit organization.

19. Pros and Cons of Creating a White Label Social Network
PROS
Ability to customize features to suit the
user base.
Provides much more detailed information
to the administrators.
Employees or customers who already
have a relationship with the company
and people within are less likely to
leave the platform or become inactive.
CONS
Time consuming and requires a
significant capital investment.
Until a community becomes self-
sustaining, company staff may have to
do much of the work starting
conversation and providing content.
Drawing new members can be difficult
unless brand has a large public
recognition.

23. How Nonprofit Organizations Can Benefit
from a Private Social Network
Deeper engagement between members.
Revenue-gathering functions
Online collaboration
Increases in loyalty and member retention.

24. Social Media (Networks) for Nonprofits Organization

25. Future of Social Networks
Google joined the social network world in June 2011 with Google+, which
has an estimated 50 million members by October 2011.
Many social networks have survived and even thrived by gathering users
from specific interests.
With its 750 million users, Facebook may not have serious competition but
Google+ can give a run for its money.

26. 5 Predictions of Social Media
By: AJ Agrawal (Inc.com)
As of 2016, there will be 2 billion social network users.
1. Tools to look within. (example: Follow [Facebook], Lists [Twitter])
2. Greater focus on personality.
3. Incorporation of multimedia content. (examples: pictures and videos)
4. More fluidity of content.
5. Decision-making power from data. (“More users can only mean more
opportunities for business to extract relevant data regarding their customers more

27. Discussion
1) What is a social network site?
2) How many users are there on Facebook?
3) What are some benefits for a company to have social network?
4) What is an example of a Business-to-Consumer and Business-to-Business?
5) What is a white label social network?
6) As a social network user, where do you think social network is going?