Social networking sites and how they make money.

2. Rachid Ben hoummada

Pavel Orlov

Annita Tatiane T D

Stefanie Triebelnig

Jennifer Wimmer

KHLeuven 2
03/05/2009

3. What is all the buzz about the Social

Networking? (Video)
Price of Social Networking Sites

Facebook – behind the scenes

StudiVz

Vkontakte

MySpace

Conclusion

KHLeuven 3
03/05/2009

4. A few seconds, please…

KHLeuven 4
03/05/2009

5. Any idea?

KHLeuven 5
03/05/2009

6. Price tag
Number of users User value
©techcrunch.com
KHLeuven 6
03/05/2009

8. Founded: 2004 in Massachusettes

Founder: Mark Zuckerberg

Headquarters : Palo Alto, CA

Revenue: 300 million USD (2008)

Employees: 700

Users: > 200 million

KHLeuven 8
03/05/2009

9. 2004: USD 500 000 from Peter Thiel

2005: USD 40.2 million from Accel and

Greylock
2006: Yahoo purchase?

2007: Microsoft ,1.6 % share for USD 240

Investment of USD 60 million
KHLeuven 9
03/05/2009

10. • 2008: USD 100 million Triple Point value
between USD 3.75 and 5 billion
• Today: USD 440 million in total debt and
equity financing
KHLeuven 10
03/05/2009

11. Investments

Sponsored Groups

Advertising

KHLeuven 11
03/05/2009

12. Create your own Ad!

Page, Application, Group or Event

New Ad placement

People targeted – Filter system

KHLeuven 12
03/05/2009

13. • Target your audience
location, age, sex, education, workplace, relationship
interests…
• Pricing:
Minimum : 1USD per day, define maximum
• Campaign
• Payment method
KHLeuven 13
03/05/2009

14. 2007 – Connect U claimed FB

Online scams

Users

Report abuse

KHLeuven 14
03/05/2009

15. 2007: Code to generate FB page was made

public
Students downloaded 70.000 profiles

Sell users data

Difficulties deleting the account

Pro-mafia Group case

KHLeuven 15
03/05/2009

16. Recent Issues:
Changes to site

Phishing Attack

KHLeuven 16
03/05/2009

18. Based in Berlin, Germany

One of the biggest Social Networks in

Europe
10 million members

KHLeuven 18
03/05/2009

19. View of the full profile

Linking permission

People visiting your site

Groups, videos, audio data …..

KHLeuven 19
03/05/2009

20. 60.000 to 100.000 Euros a month

Spreadshirt

Samwer

Holtzbrinck

KHLeuven 20
03/05/2009

21. Google Ads

Traffic sharing

KHLeuven 21
03/05/2009

22. Telegram

News-Teaser

Brand community

Display Ads

KHLeuven 22
03/05/2009

23. Where do you want to put your ad?

What kind of ad?

Minimum booking budget 2.500

KHLeuven 23
03/05/2009

24. Missing protection

No guarantee of misusage

New accusations - images in StudiVZ

KHLeuven 24
03/05/2009

25. Copying of the layout and design of

Facebook
Bluff users

Not allowed to register of commercial

purposes
KHLeuven 25
03/05/2009

26. Log on
1.
select “mein account“
2.
“mein account löschen”
3.
KHLeuven 26
03/05/2009

28. Advertising
Parent company
The MySpace credit card

29. Credit
limit
rising
30 days
billed
$25 billed

30. quot;word of mouth advertising”

media

(TV, Radio, Newspaper, Journals, buses, trai
n...)

31. 2006: PERP
problem
2005:financial
Competition
problem
MySpace.com

32. Contact the website

USA Legislation taken into account


34. KHLeuven 34
03/05/2009

35. Wealthy owners

No advertisements until recently

The purpose is unknown

KHLeuven 35
03/05/2009

36. Precise targeting

Low cost – from €0,02 per click

Only for users

For companies – very expensive

KHLeuven 36
03/05/2009

37. Default privacy settings

Content – video, audio

More info about users

Not real time

KHLeuven 37
03/05/2009

38. Sorry, no such feature

KHLeuven 38
03/05/2009

39. They earn a little

They cost a lot

Is there something we don’t know?

KHLeuven 39
03/05/2009

41. Please feel free to ask questions
KHLeuven 41
03/05/2009