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Slide 1: Social Media Technology Assessment Nathan Burkhart Jeff Chen Matt Chew Spence Mario Espinoza Jeffrey Kalvass Devang Parekh March 14, 2007 Strategic Computing and Communications Technology University of California, Berkeley
Slide 2: What is Social Media? User Profile Photos, Audio, Video Traversable Contacts Commentary Introduction  Business Model Framework  Case Studies  Conclusion
Slide 3: Functional User Profile Focused Interest Focused Introduction  Business Model Framework  Case Studies  Conclusion Entertaining
Slide 4: Underlying Technology Important Issues: Open Source vs. Proprietary, Scalability, Security, Performance Introduction  Business Model Framework  Case Studies  Conclusion
Slide 5: Policy and Legal Considerations ● ● ● ● Copyright Infringement Indecent Content First Amendment Rights International Policy Differences Introduction  Business Model Framework  Case Studies  Conclusion
Slide 6: Business Models 101 Introduction  Business Model Framework  Case Studies  Conclusion
Slide 7: Benefits of Social Networks Capabilities of Social Networking (company) Create a unique Identity LiveSpaces Xanga SixApart MySpace Flickr Facebook YouTube Classmates Friendster LinkedIn Introduction  Business Model Framework  Case Studies  Conclusion Content consumption / Content sharing Communicating
Slide 8: 3 Benefits Key Questions: 2) How to grow? 3) How to monetize? 4) How to keep users? Business Introduction  Business Model Framework  Case Studies  Conclusion
Slide 9: LinkedIn Partnerships Job listing Relationship Community Capabilities Large user base Activities Software developement Business development Value Proposition Recommendation Reconnect with classmates/ collegues Find Jobs Upgrade e -mail Channel Viral Marketing : invitations Website Toolbar Outlook Plug -in Customers Professionals 25-65 Company recruiters Headhunters Software tools Ad Placing Costs SW Development costs Business Admin Revenues Subscriptions Classified: Jobs Advertising Introduction  Business Model Framework  Case Studies  Conclusion
Slide 10: LinkedIn - Growth Partnerships Job listing Relationship Community Capabilities Large user base Activities Software developement Business development Value Proposition Recommendation Reconnect with classmates/ collegues Find Jobs Upgrade e -mail Channel Viral Marketing : invitations Website Toolbar Outlook Plug -in Customers Professionals 25-65 Company recruiters Headhunters Software tools Ad Placing Costs SW Development costs Business Admin Revenues Subscriptions Classified: Jobs Advertising Introduction  Business Model Framework  Case Studies  Conclusion
Slide 11: LinkedIn - Revenues Partnerships Job listing Relationship Community Capabilities Large user base Activities Software developement Business development Value Proposition Recommendation Reconnect with classmates/ collegues Find Jobs Upgrade e -mail Channel Viral Marketing : invitations Website Toolbar Outlook Plug -in Customers Professionals 25-65 Company recruiters Headhunters Software tools Ad Placing Costs SW Development costs Business Admin Revenues Subscriptions Classified: Jobs Advertising Introduction  Business Model Framework  Case Studies  Conclusion
Slide 12: LinkedIn – Stickiness Partnerships Job listing Relationship Community Capabilities Large user base Activities Software developement Business development Value Proposition Recommendation Reconnect with classmates/ collegues Find Jobs Upgrade e -mail Channel Viral Marketing : invitations Website Toolbar Outlook Plug -in Customers Professionals 25-65 Company recruiters Headhunters Software tools Ad Placing Costs SW Development costs Business Admin Revenues Subscriptions Classified: Jobs Advertising Introduction  Business Model Framework  Case Studies  Conclusion
Slide 13: Six Apart Partnerships Retail Relationship Community Direct API Capabilities Large user base Folksonomy Ad Placing Provide VAS API Photo Share Revenues Costs Development costs Business Admin Disk space Bandwidth Subscription Advertising Gift Certificates Virtual Gifts Merchandise Activities Blogging Communicating Online Social Search Value Proposition Store/Org/Share Photos Publish Self Create online presence Channel Website Viral Marketing IM (links) Customers Individuals Advertisers Affilliates Six Apart Introduction  Business Model Framework  Case Studies  Conclusion
Slide 14: Six Apart – Growth Partnerships Retail Relationship Community Direct API Capabilities Large user base Folksonomy Ad Placing Provide VAS API Photo Share Revenues Costs Development costs Business Admin Disk space Bandwidth Subscription Advertising Gift Certificates Virtual Gifts Merchandise Activities Blogging Communicating Online Social Search Value Proposition Store/Org/Share Photos Publish Self Create online presence Channel Website Viral Marketing IM (links) Customers Individuals Advertisers Affilliates Six Apart Introduction  Business Model Framework  Case Studies  Conclusion
Slide 15: Six Apart – Revenues Partnerships Retail Relationship Community Direct API Capabilities Large user base Folksonomy Ad Placing Provide VAS API Photo Share Revenues Costs Development costs Business Admin Disk space Bandwidth Subscription Advertising Gift Certificates Virtual Gifts Merchandise Activities Blogging Communicating Online Social Search Value Proposition Store/Org/Share Photos Publish Self Create online presence Channel Website Viral Marketing IM (links) Customers Individuals Advertisers Affilliates Six Apart Introduction  Business Model Framework  Case Studies  Conclusion
Slide 16: Six Apart – Stickiness Partnerships Retail Relationship Community Direct API Capabilities Large user base Folksonomy Ad Placing Provide VAS API Photo Share Revenues Costs Development costs Business Admin Disk space Bandwidth Subscription Advertising Gift Certificates Virtual Gifts Merchandise Activities Blogging Communicating Online Social Search Value Proposition Store/Org/Share Photos Publish Self Create online presence Channel Website Viral Marketing IM (links) Customers Individuals Advertisers Affilliates Six Apart Introduction  Business Model Framework  Case Studies  Conclusion
Slide 17: MySpace Partnerships Search engines Media / Journalists Relationship Community Capabilities Large user base Large UGC Search Authoring tools Activities Software developement Business development Promotion Value Proposition People Search Reconnect with classmates/ collegues Find friends Express identity Photo Share Channel Viral Marketing : invitations Website Magazines News Corp Search Engines 3rd party develop Revenues Subscriptions Advertising Customers Teenagers Young Adults Music bands Merchants Music labels Media Costs SW Development costs Business Admin Disk space Bandwidth Introduction  Business Model Framework  Case Studies  Conclusion
Slide 18: MySpace Growth Partnerships Search engines Media / Journalists Relationship Community Capabilities Large user base Large UGC Search Authoring tools Activities Software developement Business development Promotion Value Proposition People Search Reconnect with classmates/ collegues Find friends Express identity Photo Share Channel Viral Marketing : invitations Website Magazines News Corp Search Engines 3rd party develop Revenues Subscriptions Advertising Customers Teenagers Young Adults Music bands Merchants Music labels Media Costs SW Development costs Business Admin Disk space Bandwidth Introduction  Business Model Framework  Case Studies  Conclusion
Slide 19: MySpace Revenues Partnerships Search engines Media / Journalists Relationship Community Capabilities Large user base Large UGC Search Authoring tools Activities Software developement Business development Promotion Value Proposition People Search Reconnect with classmates/ collegues Find friends Express identity Photo Share Channel Viral Marketing : invitations Website Magazines News Corp Search Engines 3rd party develop Revenues Subscriptions Advertising Customers Teenagers Young Adults Music bands Merchants Music labels Media Costs SW Development costs Business Admin Disk space Bandwidth Introduction  Business Model Framework  Case Studies  Conclusion
Slide 20: MySpace Stickiness Partnerships Search engines Media / Journalists Value Proposition People Search Reconnect with classmates/ collegues Find friends Express identity Photo Share Costs SW Development costs Business Admin Disk space Bandwidth Relationship Community Capabilities Large user base Large UGC Search Authoring tools Activities Software developement Business development Promotion Channel Viral Marketing : invitations Website Magazines News Corp Search Engines 3rd party develop Revenues Subscriptions Classified: Jobs Advertising Customers Teenagers Young Adults Music bands Merchants Music labels Media Introduction  Business Model Framework  Case Studies  Conclusion
Slide 21: Growth APIs Mashups Complements Growth Positive Feedback Invitations Introduction  Business Model Framework  Case Studies  Conclusion
Slide 22: Revenue Sources Access to users (ie Advertising) Placement of content (ie premium services) Revenue Sources Partners to make online experience a physical experience Access to content ‘Virtual goods’ Introduction  Business Model Framework  Case Studies  Conclusion
Slide 23: Stickiness Network Effects -Individual -Community Complements Stickiness Dynamic, good , unique content Permanent Cross User Actions Introduction  Business Model Framework  Case Studies  Conclusion
Slide 24: Future: YouTube Complements, Real-world goods Capabilities Huge User Base Folksonomy Ad Placing Relationship Partnerships Community Direct Value Proposition Store/Org/Share Videos Create future stars/directors Communicating Costs Development costs Business Admin Disk space Bandwidth Activities Video Host Search Channel Website Viral Marketing MySpace/ Facebook Linking Customers Individuals Advertisers Affilliates Revenues Permanent Advertising Cross-user activities Partners, subscriptions Introduction  Business Model Framework  Case Studies  Conclusion
Slide 25: Q&A
Slide 26: APPENDIX
Slide 27: Business Model Healthy Company Profits Growth Revenue Costs Stickiness Channel Relationship
Slide 28: Complements
Slide 29: Network Effects
Slide 30: Appendix
Slide 31: Business Model Healthy Company Profits Growth Stickiness Revenue Costs Positive Feedback Relationship