Measuring the ROI of Social Selling
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Social Media Is Big Business
- SOCIAL MEDIA IS BIG BUSINESS Ben Rubenstein Tufts University EXP-50
- 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? What’s the outlook for the social media economy (and related economies)?
- HOW MUCH IS SOCIAL MEDIA WORTH? (JUNE 2015 EDITION)
- HYPE OR HOPE?
- HYPE OR HOPE? 2009: $250 million valuation April 2010: $1.35 billion valuation Nov 2010: Rejects $6 billion Google offer Nov 2011: $12.8 billion valuation 2012: $5.8 billion valuation 2015: $5 billion valuation
- HYPE OR HOPE? Nov 2013: Rejects $3 billion Facebook offer May 2015: $16 billion valuation Apr 2012: $4.25 million valuation Apr 2013: $800 million valuation
- HYPE OR HOPE? 2015: $21 billion valuation? 2013: $1.5 billion valuation 2014: Acquired by Facebook for $19 billion
- Would you invest in social media?
- BUSINESS MODELS Advertising Virtual Goods Freemium Subscription
- ADVERTISING
- VIRTUAL GOODS
- FREEMIUM
- SUBSCRIPTION (PREMIUM)
- Would you pay for Facebook? (or Instagram)
- ““If you’re not paying for the product, you are the product.” Anonymous internet pundit
- “
- USER VALUE: DATA
- DATA MINING + SOCIAL LISTENING
- USER VALUE: CONTENT Instagram: “A non-exclusive, fully paid and royalty-free, transferable, sub-licensable,worldwide license “ LinkedIn: “copy, prepare derivative works of, improve, distribute, publish, remove, retain, add, process, analyze, use and commercialise, in any way known or in the future discovered…” Facebook: “...does not end upon the deactivation or deletion of a user’s account, content is only released from this license once all other users that have interacted with the content have also broken their ties with it”
- Nope.
- ADVERTISING + THE INTERNET
- TENSIONS Business Objectives User Experience
- ORIGIN STORY Advertising became dominant because: - Easy to implement - Easy to sell to investors (‘investor storytime’) - Attention is everything (vs. print ads) “The primary benefit of online advertising is the ability to see who’s looking at an ad.”
- THE AD-SUPPORTED WEB PROS: ‘Free’ content Personalization Openness CONS: Tracking Centralization Clickbait Filter bubbles
- ESCAPE HATCHES
- ESCAPE HATCHES
- ESCAPE HATCHES
- WHY AM I SEEING THESE ADS?
- WHY AM I SEEING THESE ADS?
- WHY AM I SEEING THESE ADS?
- WHY AM I SEEING THESE ADS?
- WHY AM I SEEING THESE ADS?
- RETARGETING
- ““Facebook has collected the most extensive data set ever assembled on human social behavior.”
- Targeting
- Targeting
- Targeting
- Targeting
- Targeting
