social broadcasting vs. traditional online advertising, milan zdravković

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Social broadcasting vs. traditional online advertising Milan Zdravković

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EURAXESS Conference in Dubrovnik, April 2013: Workshop Marketing Strategies and Social Media

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Page 1: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

Social broadcasting vs. traditional online advertising

Milan Zdravković

Page 2: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković
Page 3: 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

Page 4: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

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

Page 5: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

Problem: people do not trust advertisers

People trust in advertising

Page 6: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

People trust in advertising

Solution – Online advertising is going social

Page 7: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

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

Page 8: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

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

Page 9: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

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?

Page 10: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

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?

Page 11: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

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

Page 12: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

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

Page 13: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

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?

Page 14: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

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

Page 15: Social Broadcasting vs. Traditional Online Advertising, Milan Zdravković

Now, about Facebook