social broadcasting vs. traditional online advertising, milan zdravković
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EURAXESS Conference in Dubrovnik, April 2013: Workshop Marketing Strategies and Social MediaTRANSCRIPT
Social broadcasting vs. traditional online advertising
Milan Zdravković
How online advertising works?
Popular website
AdAd
Social network
AdAd
Search engine
AdAd
Customer
Advertiseror agency
Online advertising revenue models
Online advertising revenue models
◦ Advertisers pay
– Cost per 1000 impressions
– Cost per targeted visitor
– Cost per view
– Cost per click
– Cost per action (e.g. signup, purchase) or conversion
◦ Cost per conversion is cost of acquiring the customer – dividing the total cost of ad campaign with the number of conversions
Problem
Problem: people do not trust advertisers
People trust in advertising
People trust in advertising
Solution – Online advertising is going social
Solution: online advertising is going social
◦ Online ads– 1 of 1000 visitor clicks on
online ad to be taken away from a page
◦ In-text advertising– Advertisers pay for
keywords within an article, to be hyperlinked
◦ Online ads with social network widget– Consumers spend more
time and click more oftenly (35 of 1000 visitors)
Example: Shop socially
Example: ShopSocially
◦ Consumer-to-consumer marketing platform for retailers
◦ Users can ask shopping questions and share their purchases (and recommendations) with (Facebook) friends
Network effect
Network effect
◦ In economics and business, a network effect is the effect that one user of a good or service has on the value of that product to other people– When network effect is present, the value of a
product or service is dependent on the number of others using it
◦ The more users a website attracts, the more others will want to use it – This creates a natural monopoly and it is a
magnet for advertisers– The network effect could go reverse - MySpace
What is virality?
What is virality?
◦ “An object, even an immaterial object, is considered to be viral when it has the ability to spread copies of itself or change other similar objects to become more like itself when those objects are simply exposed to the viral object”
◦ To “go viral” is the ultimate goal of most online content (e.g. videos, blog posts)
◦ Virality creates a potentially exponential growth in the message's visibility and effect
How virality helps startup pages?
How virality helps startup pages?
◦ If one Facebook page has 100 “likes”, then any action by the owner on the page itself will be immediately and clearly visible to 100 users.
◦ However, if all these users take an action on this very content then this content (and a page itself) will appear in the news-feed of all of their “friends” in total.
◦ Obviously, even a page with such a low subscription rate may have extremely high visibility
Virality on Facebook
Virality on Facebook
◦ The percentage of people who have created a story from your Page post out of the total number of unique people who have seen it
Median virality of the Facebook page post (sample of 10.000 pages)
Internet meme
Internet meme
◦ A concept that spreads from person to person via the Internet– Instant communication on Internet facilitates word
of mouth transmission◦ An Internet meme may take the form of an image,
hyperlink, video, picture, website, Facebook post or hashtag– These tend to spread from person to person via
social networks, blogs, direct email, or news sources
◦ An Internet meme may stay the same or may evolve over time
More doubts?
Do you still have some doubts?
◦ As of 2009, two thirds of the world's Internet population visits a social network or blog site at least every week
◦ In 2009, time spent visiting social media sites began to exceed time spent emailing
◦ A 2010 study found that 52% of people who view news online forward it on through social networks, email, or posts
◦ Today, Facebook alone has around 1 billion active users
Now, about Facebook