Making money from social media

1. Making money from social media

2. Premium price direct sales • Self service display ads • Targeted ads • Viral marketing functionality • Virtual goods and search capability • Move into profitability http://community.brandrepublic.com/blogs/gordons_republic/archive/2009/12/17/facebook-to-hit-1bn-in-revenues.aspx

3. A massive audience of around 350m active users • More data is known about these users than ever before • Enables targeting of advertising, services and data http://www.businessinsider.com/facebook-revenues-near-1-billion-2009-12

4. Dell makes millions via Twitter • Twitter used as ‘another customer service channel’ • Twitter used as a window to showcase offers and new sales potential http://www.techwatch.co.uk/2009/12/09/dell-makes-millions-via-twitter/

5. Twitter makes a profit • Need to combat the ‘threat’ posed to search engine vulnerability from social media • Need to include Tweets in searches on Google etc • Model creates a demand = a profit for Twitter http://www.eweekeurope.co.uk/news/twitter-makes-a-profit-thanks-to-google-and-microsoft-2845

6. Selling clothes to women ‘online’ • Sales up 118% over the key Christmas period • Profits on target for 2009 • Selling clothing online was said to be ‘impossible’

7. If it is ‘convenient’ and they ‘trust it’ – consumers will buy it • Launches streaming to TV service in US in May 2008 • 9.4m subscribers – revenues up 13% in 2008 • In the UK ‘Love Film’ is making just as big an impact • Convenient • DVDs posted to your home • Ordered online

8. Threadless • YOU submit designs for T-Shirts • The community votes on them • The best get printed • Never lost money on any T-Shirt • Overheads minimal • All marketing online

9. Threadless • An astonishing profit ration for this model • $10m profit from $30m in sales http://www.collective-e.com/blog/business-model-works-threadless-generated-10-million-profit-30-million-sales

10. Music downloads – a new model • Basic service free • High quality CD sound quality service £9.99 monthly • Micropayment model popular where community resent paying high prices or paying anything at all

11. Spotify • Music business slowly realising it cannot fight this ‘free’ trend • Music business now adopting the new models and finding new revenue streams • iTunes success heralding this new age http://www.wired.com/epicenter/2009/08/biggest-record-label-earns-more-from-spotify-than-itunes-in-sweden/

12. 4.5m people in UK using this new ‘personalised radio’ service • Up from 2.9m one year earlier • Music from the ‘cloud’ more popular • What is the long term future for radio and advertising on this medium – as people expect music ‘personalised’? http://www.techradar.com/news/internet/spotify-and-last-fm-gaining-new-listeners-657361

13. As Broadband becomes more and more pervasive • More and more reliable • As personal viewing habits change and the TV is no longer the only option • Films streamed to your electronic ‘device’ becomes a serious business option • Film business faces same challenge as music business http://www.thelocal.se/23206/20091111/

14. Become a rock supremo Fund your own artist! Launched on 18 June 2007 400.000 registered users (Q1 2008) Raised £150,000 for 9 artists to produce their first album Plan for 2008. Securing financing for over 30 artists in the UK, which is more than EMI, Sony BMG or Warner Music achieved last year. http://www.slicethepie.com/