EURAXESS Conference in Dubrovnik, April 2013: Workshop Marketing Strategies and Social Media

1. Social broadcasting vs.
traditional online advertising
Milan Zdravković

3. How online advertising works?
Popular website
AdAd
Social network
AdAd
Search engine
AdAd
Customer
Advertiser
or agency
Online advertising revenue models

4. Online advertising revenue models
◦ Advertisers pay
– Cost per 1000 impressions
– Cost per targeted visitor
– Cost per view
– Cost per click
– Cost per action (e.g. signup, purchase) or conversion
◦ Cost per conversion is cost of acquiring the customer –
dividing the total cost of ad campaign with the number of
conversions
Problem

5. Problem: people do not trust advertisers
People trust in advertising

6. People trust in advertising
Solution – Online advertising is going social

7. Solution: online advertising is going social
◦ Online ads
– 1 of 1000 visitor clicks on
online ad to be taken away
from a page
◦ In-text advertising
– Advertisers pay for
keywords within an article,
to be hyperlinked
◦ Online ads with social network
widget
– Consumers spend more
time and click more oftenly
(35 of 1000 visitors)
Example: Shop socially

8. Example: ShopSocially
◦ Consumer-to-consumer
marketing platform for
retailers
◦ Users can ask shopping
questions and share their
purchases (and
recommendations) with
(Facebook) friends
Network effect

9. Network effect
◦ In economics and business, a network effect is the
effect that one user of a good or service has on the
value of that product to other people
– When network effect is present, the value of a
product or service is dependent on the number of
others using it
◦ The more users a website attracts, the more others
will want to use it
– This creates a natural monopoly and it is a
magnet for advertisers
– The network effect could go reverse - MySpace
What is virality?

10. What is virality?
◦ “An object, even an immaterial
object, is considered to be viral
when it has the ability to spread
copies of itself or change other
similar objects to become more like
itself when those objects are simply
exposed to the viral object”
◦ To “go viral” is the ultimate goal of
most online content (e.g. videos,
blog posts)
◦ Virality creates a potentially
exponential growth in the
message's visibility and effect
How virality helps startup pages?

11. How virality helps startup pages?
◦ If one Facebook page has 100 “likes”, then any
action by the owner on the page itself will be
immediately and clearly visible to 100 users.
◦ However, if all these users take an action on this
very content then this content (and a page itself) will
appear in the news-feed of all of their “friends” in
total.
◦ Obviously, even a page with such a low subscription
rate may have extremely high visibility
Virality on Facebook

12. Virality on Facebook
◦ The percentage of
people who have
created a story from
your Page post out of
the total number of
unique people who
have seen it
Median virality of the Facebook page
post (sample of 10.000 pages)
Internet meme

13. Internet meme
◦ A concept that spreads from person to person via
the Internet
– Instant communication on Internet facilitates word
of mouth transmission
◦ An Internet meme may take the form of an image,
hyperlink, video, picture, website, Facebook post or
hashtag
– These tend to spread from person to person via
social networks, blogs, direct email, or news
sources
◦ An Internet meme may stay the same or may evolve
over time
More doubts?

14. Do you still have some doubts?
◦ As of 2009, two thirds of the world's Internet
population visits a social network or blog site at least
every week
◦ In 2009, time spent visiting social media sites began
to exceed time spent emailing
◦ A 2010 study found that 52% of people who view
news online forward it on through social networks,
email, or posts
◦ Today, Facebook alone has around 1 billion active
users

15. Now, about Facebook