Sepicaly for students

1. Ecommerce – Social Networking
Advika Dwivedi
Grade-6 ‘B’

2. Introduction
•Websites focused on building online communities of people
having shared interests.
•Social networks have common themes of information
sharing, person-to-person interaction and creation of shared
& collaborative content.
•The industry has been successful in getting a large number
of people at one place, but not very successful in
monetization.
•Two-thirds of the world’s Internet population visit a social
network or blogging site and the sector now accounts for
almost 20% of all internet time.

3. Some Statistics(2010)
• According to a study by Nielson Company, 89 per cent of 1520 year olds in India access a social networking site everyday
and 60 per cent of them spend at least half an hour on social
networking each day
• The world now spends around 22 percent of all time online on
social networks and blog sites
• The average visitor spends 66% more time on these sites than a
year ago
• 9 out of every 10 U.S. Internet user now visiting a social network
in a month
• CNN's international readership found that 43% of online news
sharing occurs via social media networks and tools
• The number of users registered for virtual world sites broke the
1 billion mark during 2010

4. Some Statistics (2010)
• BlackPlanet users spent 3.6 minutes more on the site than the
average Facebook visitor
• MyYearbook and Tagged users spent around 3 minutes more
than the average MySpace visitor
• Facebook witnesses more than 65 billion page views par
month
• More than 14 million photos* are uploaded on Facebook and
8 million photos on myspace daily
*source: www.facebook.com
.

5. Key Players
Facebook
Founded: 2004
No. of users: 600 million
Revenue: US$800 million
Alexa Rank: 2
Revenue from: Banner ads, referral marketing,
partnerships, branding elements, virtual
currency

6. Key Players
Twitter
Founded: 2006
No. of users: 190 million
Revenue: US $150 million (projected 2010)
Alexa Rank: 9
Revenue from: verified accounts,
advertisements (promoted trends)

7. Key Players
Myspace
Founded: 2003
No. of users: 100+ million
Revenue: US$385 million (2009 est.)
Alexa Rank: 68
Revenue from: advertisements, Google AdSense

8. Key Players
LinkedIn
Founded: 2002
No. of users: 100+ million
Revenue: US$161.4 million (Jan. – Sep. 2010)
Alexa Rank: 18
Revenue from: premium accounts, hiring
services, advertisements, partnerships,
Google AdSense

9. Key Players
Orkut
Founded: 2004
No. of users: 120 million
Alexa Rank: 106
Revenue from: advertisements

10. LifeCycle

11. Top 10 in India(no. of users)
Total Unique Visitors (000)
Site
July 2009
July 2010
% change
Facebook
7,472
20,873
179
Orkut
17,069
19,871
16
Bharatstudent.com
4,292
4,432
3
Yahoo! Pulse
N/A
3,507
N/A
Twitter
984
3,341
239
LinkedIn
N/A
3,267
N/A
Zedge
1,767
3,206
81
Ibibo
1,562
2,960
89
Yahoo! Buzz
542
1,807
233
Shtyle.fm
407
1,550
281
Total
23,255
33,158
43

12. Top 10 Social Networking
Markets
Total Unique Visitors (000)
Market
July 2009
July 2010
% change
United States
131,088
174,429
33%
China
N/A
97,151
N/A
Germany
25,743
37,938
47%
Russian Federation
20,245
35,306
74%
Brazil
23,966
35,221
47%
United Kingdom
30,587
35,153
15%
India
23,255
33,158
43%
France
25,121
32,744
30%
Japan
23,691
31,957
35%
South Korea
15,910
24,962
57%
Total
770,092
945,040
23%

13. Top Social Networking Sites (monthly visits)

14. Top SN sites in India(avg. time spent/visit)

15. Social Networking sites for India

16. Social Networking sites for India

17. Social Networking sites for India

18. Social Networking Activities

19. Revenue Models
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Premium Services: example- LinkedIn
Advertisements
– Cost per click (CPC)
– Cost per action (CPA)
– Cost per thousand viewers (CPM)
Micropayments: small payments for upgrades
Partnerships: create profiles for partners. example-twilight, Apple iTunes with
Facebook, Simply Hired on LinkedIn
Branding elements with applications: example- Living Social application on
Facebook
Virtual Currency: online applications(games). Real money for virtual goods. Annual
revenue of two year old firm Zynga estimated $100 million in 2009
Virtual Gifts: more than $1 billion for US users in 2009
Surveys: pay members to participate and profit from selling access to its successful
audience. Example: LinkedIn

24. External Environment Analysis

25. Porter’s Five Forces
Threat of New Entrants (Medium)
Capital requirement for the new player
is low
Brand loyalty is missing
-Specialty networks (eg. Last.fm) are
still entering the online space
-No Sales force
Supplier Power (Low)
- Widgets and Apps
providers are usually
small developers with
little bargaining power
Industry Rivalry (High)
- Intense competition
between competing sites
fueled by venture capital
and speculative
valuations
Threat of Substitutes (Medium)
- Internet sites with large user
bases may create a social
networking component
(blockbuster, amazon)
-Physical data storage
Buyer Power (High)
- Switching costs are
minimal
-Users maintain more
than 1 accounts on social
networking sites and
check both accounts in
transition periods
-Little difference in the
service provided

26. Possible Success Factors for the industry
•Design – Ease of use, Attractiveness etc.
•Target Market –
Some sites target niches, some target
goegraphies
•Activity Focus –
Target market can be connecting people
over relationships, or over shared interests
•User Engagement –
Site needs to retain user minutes
•Transactions– Innovative features like applications
•Privacy –privacy filters and controls
•Entry Barriers – Easy sign ups
•Trust – Different outlooks to Trust.
•Localization– Local content, languages etc.

27. SOCIAL MEDIA-Analyzing the competitiveness
T-Factor
Question to be asked
Transactions Do the transactions on your site,
make a difference to the users life?
Are they repeated?
Function of
Repeat
transactions
Targeting
Can the site distinguish between
the preferences, likes/dislikes of
two users?
Targeted
Advertisements
and Content
Time
Do your users spend time on your
site? Are you an industry leader in
user enagements?
User
Engagement &
Content

28. Facebook - SWOT Analysis

29. Facebook - SWOT Analysis

30. Long Term Objectives

31. Recommendations

32. Thank You!