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