Making Money From Social Media Real World Examples

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Making money from social media

description

Real life examples from the media on how companies are making money in the social media space

Transcript of Making Money From Social Media Real World Examples

Page 1: Making Money From Social Media   Real World Examples

Making money from social media

Page 2: Making Money From Social Media   Real World Examples

http://community.brandrepublic.com/blogs/gordons_republic/archive/2009/12/17/facebook-to-hit-1bn-in-revenues.aspx

• Premium price direct sales

• Self service display ads

• Targeted ads

• Viral marketing functionality

• Virtual goods and search capability

• Move into profitability

• Premium price direct sales

• Self service display ads

• Targeted ads

• Viral marketing functionality

• Virtual goods and search capability

• Move into profitability

Page 3: Making Money From Social Media   Real World Examples

http://www.businessinsider.com/facebook-revenues-near-1-billion-2009-12

• 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

• 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

Page 4: Making Money From Social Media   Real World Examples

Dell makes millions via Twitter

http://www.techwatch.co.uk/2009/12/09/dell-makes-millions-via-twitter/

• Twitter used as ‘another customer service channel’

• Twitter used as a window to showcase offers and new sales potential

• Twitter used as ‘another customer service channel’

• Twitter used as a window to showcase offers and new sales potential

Page 5: Making Money From Social Media   Real World Examples

Twitter makes a profit

http://www.eweekeurope.co.uk/news/twitter-makes-a-profit-thanks-to-google-and-microsoft-2845

• 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

• 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

Page 6: Making Money From Social Media   Real World Examples

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’

• Sales up 118% over

the key Christmas

period

• Profits on target for

2009

• Selling clothing

online was said to be

‘impossible’

Page 7: Making Money From Social Media   Real World Examples

If it is ‘convenient’ and they ‘trust it’ – consumers will buy it

• Convenient

• DVDs posted to your home

• Ordered online

• Convenient

• DVDs posted to your home

• Ordered online

• 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

• 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

Page 8: Making Money From Social Media   Real World Examples

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

• 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

Page 9: Making Money From Social Media   Real World Examples

Threadless

http://www.collective-e.com/blog/business-model-works-threadless-generated-10-million-profit-30-million-sales

• An astonishing profit

ration for this model

• $10m profit from

$30m in sales

• An astonishing profit

ration for this model

• $10m profit from

$30m in sales

Page 10: Making Money From Social Media   Real World Examples

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

• 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

Page 11: Making Money From Social Media   Real World Examples

Spotify

http://www.wired.com/epicenter/2009/08/biggest-record-label-earns-more-from-spotify-than-itunes-in-sweden/

• 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

• 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

Page 12: Making Money From Social Media   Real World Examples

http://www.techradar.com/news/internet/spotify-and-last-fm-gaining-new-listeners-657361

• 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’?

• 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’?

Page 13: Making Money From Social Media   Real World Examples

http://www.thelocal.se/23206/20091111/

• 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

• 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

Page 14: Making Money From Social Media   Real World Examples

Become a rock supremoFund your own artist!Launched on 18 June 2007400.000 registered users (Q1 2008)Raised £150,000 for 9 artists to produce their first albumPlan 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/