Social Networks Monetized Revenue

WebDirections South 2008 WDS08 - Social Media Monetization

Social Media Revenue
The Business of Being Social

Laurel Papworth - Social Network Strategist +61 (0) 432 684992
Blog: http://silkcharm.blogspot.com Web: http://laurelpapworth.com Email: lpapworth@gmail.com

Sunday, 28 September 2008


ALL MY SLIDES

Slideshare.net/SilkCharm
GROUP AND TAG

WDS08



REVENUE STREAMS




The $64,000 question




The $64,000 question
If you build it...
... will they come?
... ... and will you make money?




free vs paid:
If it’s a good Social Network
concept, and you don’t
monetize it, someone else will.




The Conundrum
Free to Member

Paid For by Member

Paid To Member
RIPOFF
WHICHEVER YOU CHOOSE, ANOTHER SOCIAL NETWORK
WILL CHOOSE THE OPPOSITE




MEMBER PAYS FOR VIDEO UPLOAD




MEMBER GETS FREE VIDEO UPLOAD




MEMBER IS PAID FOR VIDEO UPLOAD




Assumption:
We can only monetize what we
value




What we value
... we get free access in return for their
Advertising




MySpace
bought by News for $580 million July 2005

reached one hundred millionth user 2006

$900 million revenue deal with Google ads

Makes $2.17 per member per year from
advertising - spotlight ads and regular banner.




TOYOTA IN WORLD OF WARCRAFT VIDEO



What we value
... is quality blogging




TechCrunch
TechCrunch image advertisements US$12,000 per
month - minimum purchase of 2 months.

$200,000 per month from job listings,
sponsorships and advertising

TechCrunch France, Japan, UK, Crunchnotes,
MobileCrunch, TalkCrunch, CrunchGear,
CrunchBase, CrunchBoard (jobs), and more

$100 million valuation



Social Media Proprietors:
Perez Hilton (fashion and gossip)

Guy Kawasaki (venture capital and business)

Seth Godin (marketing and advertising)

Darren Rowse Problogger (blog and photo)

Gawker (lots!), FastCompany




RIPPLE NOT BROADCAST




What we value
... is choice: tiers of convenience




Freemium
Most services remain free

Premium - free services but more access

Additional services not available to free accounts

More choice - same services but different colors




LINKED IN




LinkedIn and Flickr
LinkedIn
- Valued at 1 billion dollars
- Revenue approx $100 million for 2008
- 1/4 of revenue from Ads, rest from premium &
recruitment

Flickr
- bought by Yahoo! $40m in 2005
- Getty deal (revenue share for user gen content)




What we value
... is changing the world, together




DONATIONS




What we value
... open platforms




Facebook
Mobwars: $22k per day projected $15 million yr.

$uper Rewards: one App. made $1 million in a
week

$uper Rewards offer these payouts
myOfferPal 60/40
CPA Storm 50/50
CPA Lead 75/25
$R: 90% to publisher




$uper Rewards
Incentivizable Offers to cover every country on the planet

Geo Targeting management

Managing all of the creative

Maximizing revenue from each user, including customer support

Some of the Facebook Applications already incorporating $R include:
Hockey Pool Pro, Scratch and Win, Plane Crazy, SexyPoke!




Widgets/RSS for Citizen ‘Free’ Advertising



ADVERTISING FROM
113M BLOGS




APIs
Salesforce.com: Reported on their blog on Jan 8th of this
year that over 40% of all of Salesforce.com trafﬁc comes
from their API.

Amazon: 140,000 registered developers. Third-party sellers
= 28% of Amazon’s second-quarter unit sales, or $490
million.

eBay: 25,000 developers with 1,900 certiﬁed applications. 8
billion API requests, transactions up 84 % annually.




What we value
... cool fun pixel products (virtual goods)




Virtual Goods
Habbo - 106 million users between 13 and 16.
10% pay $17 to $18 per month for clothing,
household goods (pixel). Capped at $35 per
month. $200 million per year from pixels.

Cyworld $140 million per year, $100 million from
pixel products

Industry: $2 billion for 2007




VIDEO OF ROCKETON



What we value
... person to person economies




Canada
CircleLending
Africa

Germany
Netherlands and Italy
China

Jan 2008
Coming Soon

Australia
Australia
Blog source: http://www.wiseclerk.com



What we value
... our share of revenue for our content



Revenue
Share
Metacafe pays video
uploaders based on views
they bring to site



What we value
... real life merchandise and events




MERCHANDISE AND MEMBER CREATED PRODUCTS ON DEMAND API




PATENT PENDING




FLICKR: TERINEA



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