Presentation Full 1.3

Social Networking sites and how they make money

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Rachid Ben hoummada Pavel Orlov Annita Tatiane T D Stefanie Triebelnig Jennifer Wimmer

The Team

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What is all the buzz about the Social Networking? (Video)

Price of Social Networking Sites

Facebook – behind the scenes StudiVz Vkontakte MySpace

Conclusion

Overview

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A few seconds, please…

What is all the buzz about the Social Networking?

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Any idea?

Price tag

$15,000,000,000

$20,000,000,000

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How do we know?

Number of users User value Price tag

©techcrunch.com

Behind the scenes

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Founded: 2004 in Massachusettes

Founder: Mark Zuckerberg Headquarters : Palo Alto, CA Revenue: 300 million USD (2008) Employees: 700 Users: > 200 million

General info

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Financial Data

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

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Financial Data

• 2008: USD 100 million Triple Point value between USD 3.75 and 5 billion

• Today: USD 440 million in total debt and equity financing

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How do they make money?

Investments Sponsored Groups Advertising

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Advertising

Create your own Ad! Page, Application, Group or Event New Ad placement People targeted – Filter system

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Advertising

• Target your audience - location, age, sex, education, workplace, relationship

interests…

• Pricing:- Minimum : 1USD per day, define maximum

• Campaign• Payment method

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Fraud Cases 2007 – Connect U claimed FB Online scams Users Report abuse

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Privacy Issues

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

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Privacy Issues

Recent Issues:

Changes to site Phishing Attack

– Bist du schon drin?

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General Information

Based in Berlin, Germany

One of the biggest Social Networks in Europe

10 million members

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Differences to Facebook

View of the full profile

Linking permission

People visiting your site

Groups, videos, audio data …..

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Financial data

60.000 to 100.000 Euros a month

Spreadshirt

Samwer

Holtzbrinck

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How do they raise revenue?

Google Ads

Traffic sharing

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What kind of advertisements do they have?

Telegram

News-Teaser

Brand community

Display Ads

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How much is an ad on StudiVz?

Where do you want to put your ad?

What kind of ad?

Minimum booking budget 2.500

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Privacy issues

Missing protection

No guarantee of misusage

New accusations - images in StudiVZ

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Fraud

Copying of the layout and design of Facebook

Bluff users

Not allowed to register of commercial purposes

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Deletion of the Profile

1. Log on

2. select “mein account“

3. “mein account löschen”

a place for friends

How does MySpace.com rise revenue

Advertising

Parent company

The MySpace credit card

Advertising on MySpace, MyAds: Price

$25 billed

30 days

billed

Credit limit rising

Promoting themselves "word of mouth advertising”

media (TV, Radio, Newspaper, Journals, buses, train...)

Privacy issues and general problems of MySpace.com

MySpace.com

2005:financial problem

2006: PERP problemCompetitio

n

In case of problem in MySpace.com Contact the website

USA Legislation taken into account

Delete an account on MySpace.com

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- KGB pet?

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Wealthy owners No advertisements until recently

The purpose is unknown

Do they need revenue?

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Precise targeting

Low cost – from €0,02 per click

Only for users

For companies – very expensive

Targeted advertisement

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Default privacy settings

Content – video, audio

More info about users

Not real time

Differences

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Sorry, no such feature

Delete the account?

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They earn a little

They cost a lot

Is there something we don’t know?

Conclusion

Everybody involved –

what is your part?

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Thank you for attention

Please feel free to ask questions