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Why are social networking sites successful? Unsuccessful?. Goals Ability to stick to them Needs/wants of user’s Making adjustments Secure Large user base. How do the social networking sites intend to make money?. Venture Capital. F irms provide startup financing
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Why are social networking sites successful? Unsuccessful? • Goals • Ability to stick to them • Needs/wants of user’s • Making adjustments • Secure • Large user base
Venture Capital • Firms provide startup financing • Assume investment will pay off with IPO • Facebook • $27.5 million investments
Advertising • Pay social network to display their ads • More people view ads on popular sites • Twitter Posts • Facebook • Moves ads from sidebar to newsfeed • More likely to notice / interact • “Likes”
Entertainment • Zynga • Purchase virtual goods with actual money • 30% of revenues to Facebook • 12% of total revenue in 2011 • $445 million • Facebook Gifts • Innovative way to earn money
Premium Offerings • Offer more options in addition to free site • Premium v. Freemium • LinkedIn • Membership fees • Match.com • Pandora
How are businesses & companies using social networks to make money or manage?
Business Facebook Applications • New business, not marketing • Integrate and generate revenue directly from app • Other companies pay for users • Jobster Career Networking • Users pay for services • Lending Club
Competition • Startup Costs • Excess of Players • Facebook • Perception of the public
Marketing • “As Marketers Move In, Users Move Out” • Gaining Advertisers • Measuring success • “Likes” • Ensuring the message gets across
Privacy • User Anonymity • Identity Theft • Spamming • Malware • Corporate Espionage
Ethical Considerations • Addiction • Filtering
Emerging Trends in Social Networking Changing Corporate Culture Internal and external implementation Mobility of Social Networking Outsourcing of Social Networking
Implementation Drivers Employee Collaboration Efficiency in locating people and resources Idea Generation
Mobility • BYOD Programs • Half of Americans use Smartphones