how does social make money

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    How does social media make money?

    3rd October 2011

  • Well, it depends whos asking?

    The client?

    Potential investor?

    Your mum?

  • What's the ROI on a million followers and a Retweet from @KanyeWest?

    What does the client want to know?

  • 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

    1.unknown
  • What are clients spending this money on?

    Source: Research Runner on bhealf of Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB). October 2011

  • Hit Like if you enjoyed my apples.

    Investing in engagement

  • CONVERSATIONS THAT PUSH CONSUMERS UP THE PURCHASE LADDER

  • visit us on Facebook

    Were shut

    Investing in social commerce

  • TURNING SOCIAL PLATFORMS INTO A BRANDS SHOP WINDOW

  • If 1,000 of you vote, Ill get you a discount at Macys

    Investing in group buying

  • COLLECTIVE PSYCHOLOGY MEETS E-COMMERCE

  • How does this kind of social media investment contribute to a brands

    bottom line?

  • What do investors want to

    know?

  • How do free services make money?

  • It may feel free but is it really?

  • 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

  • Advertising is keeping social media networks afloat

    Facebook revenue 2011

  • 12% OF FACEBOOK REVENUE CAME FROM ZYNGA IN 2011

    Networks are diversifying their revenue streams

  • Social networks are adopting alternative business models

    FREEMIUM - BASIC SERVICES FREE BUT YOU PAY FOR THE PREMIUM

  • Whilst Social media darling Pinterest is making money from the start

    AFFILIATE MARKETING MONETISES USER GENERATED ACTIVITY

  • Agencies can make money from social media in three ways:

    Everyone becomes an expert - not just in what it is but how it works.

    2. Develop solutions that directly or indirectly make money for our clients

    3. Creating valuable experiences for consumers

  • 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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