Social media platforms primarily make money through advertising and by monetizing users' data. They analyze users' personal information to serve targeted ads and share data with brands. While basic services are usually free for users, social networks employ business models like premium subscriptions, affiliate marketing, and group buying to generate revenue. Measuring the exact return on investment from social media can also be challenging due to the large volume of online conversations.

1. How does social media make money? Click to edit Master subtitle style 3rd October 2011

2. Well, it depends who’s asking? The client? Potential investor? Your mum?

3. What's the ROI on a million followers and a Retweet from @KanyeWest? What does the client want to know?

4. 9 out of 10 mid-large businesses will increase or maintain their social media spend in 2012 Source: Research Runner on bhealf of Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB). October 2011

5. What are clients spending this money on? Source: Research Runner on bhealf of Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB). October 2011

6. Hit Like if you enjoyed my apples. Investing in engagement

7. CONVERSATIONS THAT PUSH CONSUMERS UP THE PURCHASE LADDER

8. visit us on Facebook We’re shut Investing in social commerce

9. TURNING SOCIAL PLATFORMS INTO A BRAND’S SHOP WINDOW

10. If 1,000 of you vote, I’ll get you a discount at Macys Investing in group buying

11. COLLECTIVE PSYCHOLOGY MEETS E-COMMERCE

12. How does this kind of social media investment contribute to a brand’s bottom line?

13. What do investors want to know?

14. How do free services make money?

15. It may feel free but is it really?

16. The price we pay costs nothing, but the data we provide is worth millions to social network BRANDS ARE ABLE TO SERVE TARGETED ADVERTISING TO AUDIENCES BASED ON WHO THEY ARE

17. Advertising is keeping social media networks afloat Facebook revenue 2011

18. 12% OF FACEBOOK REVENUE CAME FROM ZYNGA IN 2011 Networks are diversifying their revenue streams

19. Social networks are adopting alternative business models FREEMIUM - BASIC SERVICES FREE BUT YOU PAY FOR THE PREMIUM

20. Whilst Social media darling Pinterest is making money from the start AFFILIATE MARKETING MONETISES USER GENERATED ACTIVITY

22. volume of noise makes it tough to isolate the impact of social media comms & measure ROI And if your mum asks just tell her...