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Introduction
What is SNS ? Key Drivers
Major players Business model Revenue and breakup Japan, China - key trends Impact on Telcos Emerging Trends and Issues
Introduction
SNS is a platform to build social networks or social relations among people that allow users to share ideas, pictures, posts, activities, events & interests with people in their network. American-based services such as Facebook, Google+, LinkedIn, Tumblr, Pinterest and Twitter widely used worldwide XING in parts of Europe Hi5 and Orkut in South America and Central America Cyworld, Mixi, Orkut, renren, Sina Weibo and Wretch in Asia and the Pacific Islands Why is it important for business today? Average Indian spent 25% of his/her online time on social networking sites Target their customers in a more informed way and also gain real-time feedbacks Customer engagement and brand building Deepening relationships with their customers
Key Drivers
Technology Evolution Mobility
Feature Phone
Smart Phone
Seamless Connectivity due to evolution of broadband Globalization Peer Pressure & Changing behavioral pattern of users
Major Players
1. Social Connection For keeping in touch with friends and family members. Facebook: to build connections and share information with people. Twitter: keep up with others via real-time information network. Google+: designed to allow users to build circles of contacts and can interact in circles. My space: has evolved to focus on social entertainment.
Name Facebook Twitter Google Plus+ Orkut Hi5 Pinterest MySpace Number Of Users 1,000,000,000 500,000,000 500,000,000 100,000,000 80,000,000 50,000,000 30,000,000+ Monthly Visitors 800,000,000 250,000,000 150,000,000 22,000,000 18,000,000 140,500,000 26,500,000 Alexa Rank 2 9 10 319 902 26 161
2. Multimedia Sharing To share video and photography content online. YouTube: allows users to share and view video content. Flickr: for managing digital photographs online and sharing them with others. Picasa: offers integrated tagging and sharing with Google+.
3. Informational Made up of people seeking answers to everyday problems. Forums filled with people who are looking for the same kind of information. Super Green Me: individuals interested in adopting green living practices can interact. HGTV Discussion Forums: individuals interested in home design improvement. Do-It-Yourself Community: to interact with each other.
4. Professional Provide opportunities for career-related growth. Some of these types of networks provide a general forum for professionals to connect, while others are focused on specific occupations or interests. LinkedIn: to build relationships by making connections and joining relevant groups. Classroom 2.0: to help teachers and professors to connect. Nurse Connect: individuals in the nursing profession connect and communicate with each other. 5. Educational To collaborate students with professors and teachers via blogs and classroom forums. The Student Room: featuring moderated message board and useful resources related to school The Math Forum: to connect students with an interest in math. ePALS School Blog: to build international connections.
Promotion Revenue
Facebook offers developers an online payment infrastructure that enables developers to receive payments from the users in an easy-to-use and secure environment. Facebook is investing heavily into Facebook-owned data centers. This is to support user growth, increased user engagement, and delivery of new products.
1) Text & Display Ads represents 60% of the companys equity value Facebook offers both 1. Cost per click (CPC): For which advertisers pay only when users actually click on the advertisement 2. Cost per thousand impressions (CPM): For which advertisers pay based on the number of times these advertisements are displayed on user Self-serve ads that can be highly targeted to appear to specific users Makes money based on how many pages are visited and the bidding rates on these advertisements. Provides real-time feedback on the size of the target audience and the suggested bid range to achieve impressions. 2) Credits on Games & Applications - 17% Facebook has its virtual currency called Credits It is the exclusive payment method for most of the games created by Zynga Facebook users can also purchase virtual gifts from third party applications using Facebook Credits 3) e-Commerce 11% Facebook has partnered with retailers like Amazon and eBay to leverage its large base of users looking for advice before making a decision as to which product to buy
1. About 85% of its revenue comes from advertising on its site. 2. More than 65% of Twitter's advertising revenue was generated from mobile devices 3. Twitter tends to charge its advertisers according to the amount of interaction their content generates. 4. It also has a "bidding" system in which advertisers compete with each other to have their content appear in a particular space. Data licensing is Twitter's second major revenue stream It sells the "firehose- it is public data, which often adds up to about 500 million tweets per day Other revenue generating onsite activities are: Promoted Accounts are offered through Cost-Per-Follow (CPF) auction, where a business is charged when a user converts into a follower. Promoting a whole account: are offered through Cost-Per-Engagement (CPE) auction, where engagement is defined as click, favorite, retweet, or reply of a promoted tweet. Promoting a trend : Promoted Trends appear at the top in the Trends section
LinkedIn is a good example of a Freemium business model. LinkedIn revenues come from 3 key revenue streams: Talent Solutions: Revenue from Talent Solutions products totaled $560.7 million Talent Solutions revenue represented 57% of total revenue Marketing Solutions: Revenue from Marketing Solutions products totaled $226.5 million Marketing Solutions revenue represented 23% of total Premium Subscriptions: Revenue from Premium Subscriptions products totaled $168.80 million Premium Subscriptions represented 20% of total Revenue from the U. S. represented 62% of total Revenue from international markets represented 38% of total Revenue from the field sales channel represented 58% of total revenue Revenue from the online, direct sales channel represented 42% of total revenue On 3 May 2012, LinkedIn announced acquisition of Slideshare, a leading professional content sharing community, for $118 Million.
47.8mn
50.7mn
16.5mn (+43.0%)
19.5mn (+18.7%)
Emerging Trends
SNS and Education Professional uses within education Constraints of social networking services in education Social networks and grassroots organizing Social networks and employment Social trading networks Legal and criminal investigations
Issues
Privacy Data mining Access to information Potential for misuse Unauthorized access Risk for child safety Trolling Online bullying
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