Company LOGO Community 2.0 Alex Pastel Franco Guadarrama Social Networks and Revenue.

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Presentation transcript:

Company LOGO Community 2.0 Alex Pastel Franco Guadarrama Social Networks and Revenue

Introduction What is a social networking community?  An interactive, user-submitted network of friends, personal profiles, blogs, groups, and music  Additional features: ability to create groups that share common interests or affiliations, upload videos, and hold discussions in forums.  Most of these sites are free to use  How do they make money then?

MySpace  Founded in 2003 by a tiny, computer-savvy group of individuals in California.  Began to make money by selling ad banners strategically placed atop every page.  Bulk of users are seventeen to thirty-five, the most highly desired demographic for advertisers.  Key to monetizing MySpace is by selling sponsored search results.  Social search can be sold to a social network by using the profile information of the hundred million people in MySpace to influence a search.

Facebook  Originally developed for college and university students.  Has since been made available to anyone to join.  Largest number of registered users with over 17 million members worldwide.  Only allows plain text and minor customization features to retain a consistent look.  Free to users and generates revenue from advertising including banner ads and sponsored groups.

Xanga  Free Web-based service, hosts weblogs, photoblogs, videoblogs, audioblogs, and social networking profiles.  Customize how Xanga looks using pre-made templates or custom HTML designs.  Commonly used as personal journals  Largely supported by advertising; banner ads that appear on the top of most pages.  Offers two levels of premium subscriptions: Premium and Premium Plus.  Receive bonus features: additional photo storage and monthly uploads.

Summary  Offer an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music and videos.  All three of these Community 2.0 companies use ads to generate the majority of their revenue.  Usually run by a small handful of people; minimal operating expenses.  Massive user-base allows for multi-million dollar profits

Business Model  Combine revenue generating techniques of MySpace, Facebook, and Xanga  Take advantage of massive user-base to monetize  Social search, sell flyers and gifts, offer premium subscriptions  Allow some use of HTML for customization, but try to keep the site clean

Thank You Community 2.0 Alex Pastel Franco Guadarrama