Comments on: Of Social Nets & Business Models http://gigaom.com/2006/06/19/of-social-networks-and-business-models/ Trusted Insights and Conversations on the Next Wave of Technology Wed, 25 Nov 2009 23:17:12 +0000 http://wordpress.com/ hourly 1 By: Social networks : Business models and monetisation (Part 1) « SatpalParmar’s Weblog http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-928987 Social networks : Business models and monetisation (Part 1) « SatpalParmar’s Weblog Thu, 26 Feb 2009 14:34:57 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-928987 <p>[...] Both  social network & advertsier would like to use datamining techniews to target there advertsing to improve their CPM . But this leds to problems related to privacy fo user information . User behaviour give  different challenges to social network. On social networks, people are primarily concerned with communicating with their friends, not looking to buy items or services. Moreover when marketers try to shake things up, users don’t take kindly to major changes. There are issues related to trust and privacy of user infomation and this lack of trust is mutual. the fundamental problem that social networks face when trying to monetize through an advertising-driven business model is the lack of trust.  To be more explicit, while brand advertisers have historically trusted people as consumers, they do not trust them in the new role of producer (e.g. uncontrollable content).  Likewise, people who are armed with the power of interactivity are also demonstrating that they are increasingly distrustful of brand advertisers (e.g. ad-skipping).(Source) [...]</p> [...] Both  social network & advertsier would like to use datamining techniews to target there advertsing to improve their CPM . But this leds to problems related to privacy fo user information . User behaviour give  different challenges to social network. On social networks, people are primarily concerned with communicating with their friends, not looking to buy items or services. Moreover when marketers try to shake things up, users don’t take kindly to major changes. There are issues related to trust and privacy of user infomation and this lack of trust is mutual. the fundamental problem that social networks face when trying to monetize through an advertising-driven business model is the lack of trust.  To be more explicit, while brand advertisers have historically trusted people as consumers, they do not trust them in the new role of producer (e.g. uncontrollable content).  Likewise, people who are armed with the power of interactivity are also demonstrating that they are increasingly distrustful of brand advertisers (e.g. ad-skipping).(Source) [...]

]]> By: Business models http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-878980 Business models Mon, 19 May 2008 13:34:59 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-878980 <p>Very good posting. I have some info on Michael porter in my website also. Thank u.</p> Very good posting. I have some info on Michael porter in my website also. Thank u.

]]> By: Tom73 http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-878654 Tom73 Fri, 16 May 2008 11:44:51 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-878654 <p>The social networks are here to stay, and the advertising into these networks are just a part of the "online evolution" if you could say so. I use a great ad blocker called AdMucher, you can custom make the blocks so you don't need to read a single advert in any social network site :)..</p> The social networks are here to stay, and the advertising into these networks are just a part of the “online evolution” if you could say so. I use a great ad blocker called AdMucher, you can custom make the blocks so you don’t need to read a single advert in any social network site :)..

]]> By: ¿Funciona la publicidad en las redes sociales? – Pelluz http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-863615 ¿Funciona la publicidad en las redes sociales? – Pelluz Fri, 29 Feb 2008 12:16:06 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-863615 <p>[...] Of Social Nets & Business Models [...]</p> [...] Of Social Nets & Business Models [...]

]]> By: Business Models thoughts | LBSblog.net | Blogging the world of location based services http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-860380 Business Models thoughts | LBSblog.net | Blogging the world of location based services Thu, 07 Feb 2008 12:00:04 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-860380 <p>[...] Young is talking along the same lines in his blog-entry Of Social Nets & Business Models, where he points out that social networks should realize that they can benefit from individually or [...]</p> [...] Young is talking along the same lines in his blog-entry Of Social Nets & Business Models, where he points out that social networks should realize that they can benefit from individually or [...]

]]> By: yashke.com » Mikrocelebryci http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-824066 yashke.com » Mikrocelebryci Wed, 02 Jan 2008 21:04:51 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-824066 <p>[...] tego nie wymyśliłem (sory Radek) - termin pojawił się już 2 lata temu na gigaom, zjawisko opisał też Clive Thompson w [...]</p> [...] tego nie wymyśliłem (sory Radek) – termin pojawił się już 2 lata temu na gigaom, zjawisko opisał też Clive Thompson w [...]

]]> By: Mickael http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-605284 Mickael Wed, 10 Oct 2007 12:23:09 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-605284 <p>I think it's a great idea. I've been using Facebook now for about 4 months. With close to 300 friends, and 40 groups I understand the system pretty much.</p> <p>If it's done in a cool way, it would work.</p> I think it’s a great idea. I’ve been using Facebook now for about 4 months. With close to 300 friends, and 40 groups I understand the system pretty much.

If it’s done in a cool way, it would work.

]]> By: boomersrec http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-54274 boomersrec Fri, 23 Feb 2007 23:59:57 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-54274 <p>"A teenage girl is checking her MySpace profile. She notices a new video ad for Old Navy on her page. But this particular ad jumps out at her because she immediately notices that the person in the ad is actually someone from her high school!! Without hesitation, she hits the “play” button and watches her friend talking and dancing..."</p> <p>I don't think that advertisers should be preying on teenage girls on Myspace, there is already too much controversy with young girls being targeted on that site for other reasons, it's the last thing any of us need to have a sexual predator trying to create "familiar" images for young girls to click on and potentially cause more problems than we already have.</p> “A teenage girl is checking her MySpace profile. She notices a new video ad for Old Navy on her page. But this particular ad jumps out at her because she immediately notices that the person in the ad is actually someone from her high school!! Without hesitation, she hits the “play” button and watches her friend talking and dancing…”

I don’t think that advertisers should be preying on teenage girls on Myspace, there is already too much controversy with young girls being targeted on that site for other reasons, it’s the last thing any of us need to have a sexual predator trying to create “familiar” images for young girls to click on and potentially cause more problems than we already have.

]]> By: thinsurface http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-54327 thinsurface Fri, 23 Feb 2007 23:54:40 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-54327 <p>It's all interesting in theory, but how well can these things be implemented? I agree with those of you who say it's all too complicated, it's a bit confusing.</p> It’s all interesting in theory, but how well can these things be implemented? I agree with those of you who say it’s all too complicated, it’s a bit confusing.

]]> By: kittyjack http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-54372 kittyjack Fri, 23 Feb 2007 23:49:33 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-54372 <p>It is just all too complicated, and not to mention costly. Sure there are a lot of businesses out there with tons of money to spend, but it seems recently there are more companies willing to gamble their profits away in hopes of becoming the next big internet craze. Hopefully this will even out soon, as more people begin to wake up and not click on everything they see, and realize that there are scams out there ready to make you feel like the ad is speaking directly to you. There's a great article on this here: http://www.peoplesearchnews.com/social-networking-/how-can-social-networking-help-your-business-succeed/</p> It is just all too complicated, and not to mention costly. Sure there are a lot of businesses out there with tons of money to spend, but it seems recently there are more companies willing to gamble their profits away in hopes of becoming the next big internet craze. Hopefully this will even out soon, as more people begin to wake up and not click on everything they see, and realize that there are scams out there ready to make you feel like the ad is speaking directly to you. There’s a great article on this here: http://www.peoplesearchnews.com/social-networking-/how-can-social-networking-help-your-business-succeed/

]]> By: Matteo La Rosa http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-54200 Matteo La Rosa Mon, 16 Oct 2006 09:15:25 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-54200 <p>I agree with Andrew when he says that the very poor design of Myspace will not ever match with big fashion companies for selling products. I am working with a big italian fashion company, and here the image is all, I do not think that they will ever mix with a web site like Myspace. This obviously will not exclude that, in the near future, niche fashion social networks will born and that advertisement could be done by people too, but the 'place' where to put the advertisement is as important as the advertisement's content, even on internet, on my advice..</p> I agree with Andrew when he says that the very poor design of Myspace will not ever match with big fashion companies for selling products. I am working with a big italian fashion company, and here the image is all, I do not think that they will ever mix with a web site like Myspace. This obviously will not exclude that, in the near future, niche fashion social networks will born and that advertisement could be done by people too, but the ‘place’ where to put the advertisement is as important as the advertisement’s content, even on internet, on my advice..

]]> By: Paul http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-54149 Paul Fri, 28 Jul 2006 15:02:20 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-54149 <p>Classic thinking on brands is all based on creating a consistent identity / meaning for that brand in their consumers minds. </p> <p>As big a problem with consumer involvement (apart from trust) is that getting the brand to be created (or recreated) with user generated content could be a bit hit and miss - there will be a reasonable number of ads totally off target even with good intention. Good advertising combines a great creative execution with a message that will drive the consumers to action. Thats a level of precision hard to hit with advertising profesionals let alone consumers.</p> <p>It might be possible to come up with a new brand (or model), that has as part of its DNA consumer involvement (as indeed these community sites have), like threadless etc… for mainstream consumer brands (the Cokes etc..), but it would need very careful thought and masses is at stake.</p> <p>As part of all of this, Old Navy etc… rely on production values in commercials to reinforce brand value - hard to do on consumer generated content.</p> <p>And of course they want to see their clothing in the ads - so there needs to be some meccanic that allows this to be done cost effectively and be compared against the traditional media equivalent.</p> <p>I'm still thinking around this area to get my approach straight on how to connect with the audience, so may have more to say later…</p> Classic thinking on brands is all based on creating a consistent identity / meaning for that brand in their consumers minds.

As big a problem with consumer involvement (apart from trust) is that getting the brand to be created (or recreated) with user generated content could be a bit hit and miss – there will be a reasonable number of ads totally off target even with good intention. Good advertising combines a great creative execution with a message that will drive the consumers to action. Thats a level of precision hard to hit with advertising profesionals let alone consumers.

It might be possible to come up with a new brand (or model), that has as part of its DNA consumer involvement (as indeed these community sites have), like threadless etc… for mainstream consumer brands (the Cokes etc..), but it would need very careful thought and masses is at stake.

As part of all of this, Old Navy etc… rely on production values in commercials to reinforce brand value – hard to do on consumer generated content.

And of course they want to see their clothing in the ads – so there needs to be some meccanic that allows this to be done cost effectively and be compared against the traditional media equivalent.

I’m still thinking around this area to get my approach straight on how to connect with the audience, so may have more to say later…

]]> By: Mick Liubinskas http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-54146 Mick Liubinskas Wed, 21 Jun 2006 03:22:17 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-54146 <p>Yes to trust. It's the ying/yang that people (real people) are flocking to sites that are not big brother so they can hang out and be themselves without being sold to or lectured or limited. That's the My Space beauty as I see it. </p> <p>When they get gobbled up, even if they only say 'A part of Global Corp' it doesn't take long for the champions to realise that things are amiss if the freedom is pushed. Yahoo did well with Flickr, but even then the 'Do More with Your Photos' made me irk. MySpace looks like it's going to get banner added and the subtelty will be Newscorp Hammer-Like. </p> <p>Interesting to see though, especially with FaceBook and 100 me-too's hitting the streets.</p> <p>http://zapr.typepad.com/michael/2006/06/nokia<em>live</em>8_ad.html</p> Yes to trust. It’s the ying/yang that people (real people) are flocking to sites that are not big brother so they can hang out and be themselves without being sold to or lectured or limited. That’s the My Space beauty as I see it.

When they get gobbled up, even if they only say ‘A part of Global Corp’ it doesn’t take long for the champions to realise that things are amiss if the freedom is pushed. Yahoo did well with Flickr, but even then the ‘Do More with Your Photos’ made me irk. MySpace looks like it’s going to get banner added and the subtelty will be Newscorp Hammer-Like.

Interesting to see though, especially with FaceBook and 100 me-too’s hitting the streets.

http://zapr.typepad.com/michael/2006/06/nokialive8_ad.html

]]> By: 93South http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-54143 93South Tue, 20 Jun 2006 15:37:33 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-54143 <p>Sounds very interesting and in the offline world they are trying to work this magic through comapanies like BzzAgent. However, besides the potential backlash, I'm not sure if the concept would scale.</p> Sounds very interesting and in the offline world they are trying to work this magic through comapanies like BzzAgent. However, besides the potential backlash, I’m not sure if the concept would scale.

]]> By: dave http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-54140 dave Tue, 20 Jun 2006 14:29:42 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-54140 <p>i'm a little confused: in most states, i'm allowed to snap a photo of anybody in public, given the right that i have based on the subject's forfeiture of a 'reasonable right to privacy' while in public (actually may include his/her front lawn)…but if i use the same photo in a commercial implementation, have i broken a rule? also, if the subject was not given a "reasonable right to privacy" within an online community that is itself wrestling with user privacy issues, what happens next? </p> <p>here, let's continue your scenario: that same teenage girl who saw the cool old navy ad blogs about it within the site…she's connected to her older brother (20's) and in turn, a few of his friends (also 20's)…they use the 1st degree connection to the viewer to contact the teen's girlfriend and solicit her for sex, using the 'funny ad' as a social bridge. next thing you know, we're all reading about her on www.mycrimespace.com, and old navy is pulling the campaign and pointing fingers at myspace…</p> i’m a little confused: in most states, i’m allowed to snap a photo of anybody in public, given the right that i have based on the subject’s forfeiture of a ‘reasonable right to privacy’ while in public (actually may include his/her front lawn)…but if i use the same photo in a commercial implementation, have i broken a rule? also, if the subject was not given a “reasonable right to privacy” within an online community that is itself wrestling with user privacy issues, what happens next?

here, let’s continue your scenario: that same teenage girl who saw the cool old navy ad blogs about it within the site…she’s connected to her older brother (20’s) and in turn, a few of his friends (also 20’s)…they use the 1st degree connection to the viewer to contact the teen’s girlfriend and solicit her for sex, using the ‘funny ad’ as a social bridge. next thing you know, we’re all reading about her on http://www.mycrimespace.com, and old navy is pulling the campaign and pointing fingers at myspace…

]]> By: James Cherkoff http://gigaom.com/2006/06/19/of-social-networks-and-business-models/#comment-54137 James Cherkoff Tue, 20 Jun 2006 10:08:31 +0000 http://gigaom.wordpress.com/2006/06/19/of-social-networks-and-business-models/#comment-54137 <p>I don't think brands have ever "trusted consumers" - they could just rely on them to buy.</p> I don’t think brands have ever “trusted consumers” – they could just rely on them to buy.

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