Making money from social media

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

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

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 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

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’

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

• 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

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

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

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

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

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’?

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

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/