how does social make money

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Click to edit Master subtitle style How does social media make money? 3rd October 2011

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Page 1: How does social make money

Click to edit Master subtitle styleHow does social media make money?

3rd October 2011

Page 2: How does social make money

Well, it depends who’s asking?

The client?Potential investor?

Your mum?

Page 3: How does social make money

What's the ROI on a million followers and a Retweet from @KanyeWest?

What does the client want to know?

Page 4: How does social make money

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9 out of 10 mid-large businesses will increase or maintain their social media spend in 2012

Page 5: How does social make money

What are clients spending this money

on?

Source: Research Runner on bhealf of Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB). October 2011

Page 6: How does social make money

Hit Like if you enjoyed my

apples.

Investing in engagement

Page 7: How does social make money

CONVERSATIONS THAT PUSH

CONSUMERS UP THE PURCHASE

LADDER

Page 8: How does social make money

visit us on visit us on FacebookFacebookWe’re shutWe’re shut

Investing in social commerce

Page 9: How does social make money

TURNING SOCIAL

PLATFORMS INTO A BRAND’S SHOP WINDOW

Page 10: How does social make money

If 1,000 of you vote, I’ll get

you a discount at Macys

Investing in group buying

Page 11: How does social make money

COLLECTIVE PSYCHOLOGY

MEETS E-COMMERCE

Page 12: How does social make money

How does this kind of social media investment contribute to a brand’s

bottom line?

Page 13: How does social make money

What do investors want to know?

Page 14: How does social make money

How do free services make money?

Page 15: How does social make money

It may feel free but is it really?

Page 16: How does social make money

The price we pay costs nothing, but the data we provide is worth millions to social network

BRANDS ARE ABLE TO SERVE

TARGETED ADVERTISING TO

AUDIENCES BASED ON WHO

THEY ARE

Page 17: How does social make money

Advertising is keeping social media networks afloat

Facebook revenue 2011

Page 18: How does social make money

12% OF FACEBOOK

REVENUE CAME FROM ZYNGA IN

2011

Networks are diversifying their revenue streams

Page 19: How does social make money

Social networks are adopting alternative business models

FREEMIUM - BASIC SERVICES FREE BUT YOU PAY FOR THE

PREMIUM

Page 20: How does social make money

Whilst Social media darling Pinterest is making money from the start

AFFILIATE MARKETING MONETISES

USER GENERATED

ACTIVITY

Page 21: How does social make money

Agencies can make money from social media in three ways:

1.Everyone becomes an expert - not just in what it is but how it works.

2. Develop solutions that directly or indirectly make money for our clients

3. Creating valuable experiences for consumers

Page 22: How does social make money

volume of noise makes it tough to isolate the impact of social media comms & measure ROI

And if your mum asks just tell her...