2. BIG QUESTIONS
How does social media make money?
What drives the value of social media for users? For
advertisers? For investors?
What risks and challenges should we be aware of?
Whatโs the outlook for the social media economy (and
related economies)?
3. HOW MUCH IS SOCIAL MEDIA
WORTH? (JUNE 2015 EDITION)
21. USER VALUE: CONTENT
Instagram: โA non-exclusive, fully paid and royalty-free,
transferable, sub-licensable,worldwide license โ
LinkedIn: โcopy, prepare derivative works of, improve,
distribute, publish, remove, retain, add, process, analyze,
use and commercialise, in any way known or in the
future discoveredโฆโ
Facebook: โ...does not end upon the deactivation or
deletion of a userโs account, content is only released
from this license once all other users that have
interacted with the content have also broken their ties
with itโ
25. ORIGIN STORY
Advertising became dominant because:
- Easy to implement
- Easy to sell to investors (โinvestor storytimeโ)
- Attention is everything (vs. print ads)
โThe primary benefit of online advertising is
the ability to see whoโs looking at an ad.โ