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How does social make money

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How does social make money

  1. 1. How does social media make money? Click to edit Master subtitle style 3rd October 2011
  2. 2. Well, it depends who’s asking? The client? Potential investor? Your mum?
  3. 3. What's the ROI on a million followers and a Retweet from @KanyeWest? What does the client want to know?
  4. 4. 9 out of 10 mid-large businesses will increase or maintain their social media spend in 2012 Source: Research Runner on bhealf of Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB). October 2011
  5. 5. What are clients spending this money on? Source: Research Runner on bhealf of Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB). October 2011
  6. 6. Hit Like if you enjoyed my apples. Investing in engagement
  7. 7. CONVERSATIONS THAT PUSH CONSUMERS UP THE PURCHASE LADDER
  8. 8. visit us on Facebook We’re shut Investing in social commerce
  9. 9. TURNING SOCIAL PLATFORMS INTO A BRAND’S SHOP WINDOW
  10. 10. If 1,000 of you vote, I’ll get you a discount at Macys Investing in group buying
  11. 11. COLLECTIVE PSYCHOLOGY MEETS E-COMMERCE
  12. 12. How does this kind of social media investment contribute to a brand’s bottom line?
  13. 13. What do investors want to know?
  14. 14. How do free services make money?
  15. 15. It may feel free but is it really?
  16. 16. 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
  17. 17. Advertising is keeping social media networks afloat Facebook revenue 2011
  18. 18. 12% OF FACEBOOK REVENUE CAME FROM ZYNGA IN 2011 Networks are diversifying their revenue streams
  19. 19. Social networks are adopting alternative business models FREEMIUM - BASIC SERVICES FREE BUT YOU PAY FOR THE PREMIUM
  20. 20. Whilst Social media darling Pinterest is making money from the start AFFILIATE MARKETING MONETISES USER GENERATED ACTIVITY
  21. 21. <ul><li>Agencies can make money from social media in three ways: </li></ul><ul><li>Everyone becomes an expert - not just in what it is but how it works. </li></ul><ul><li>2. Develop solutions that directly or indirectly make money for our clients </li></ul><ul><li>3. Creating valuable experiences for consumers </li></ul>
  22. 22. volume of noise makes it tough to isolate the impact of social media comms & measure ROI And if your mum asks just tell her...

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