Social Networking Sites

Presented By:
NAME Ankita Singh Arnab Majumdar PRN 12020541007 12020541014

Boney Mathai
Vinita Firake Shariq Syed Gokul Kannan

12020541019
12020541031 12020541044 12020541070

Symbiosis Institute Of Telecom Management

A social networking service is a platform to build social networks or social relations among people who, for example, share interests, activities, backgrounds, or real-life connections. A social network service consists of a representation of each user (often a profile), his/her social links, and a variety of additional services. Most social network services are web-based and provide means for users to interact over the Internet, such as e-mail and instant messaging.

An Interaction

Content to Commerce
Consumer Engagement Branded Content Social Media

Market Products

Stay in touch with family

Professional networking

Help Small Businesses

Platform

Consumer Information

Stay informed about the world

Brand Interaction

Platform for sharing interests, activities, background, connections Players: Face book, Linked IN, Twitter, Pinterest, Hi5, Nexopedia, Skyrock etc

Twitter- Real time Web Face book- Live Feed Linked IN- online cloud for human resource Four Square- Location based Experience

What is Social Media Used for: Understanding the consumer requirements Majorly used for: 1.) Keeping touch with Family/Friends- existing as well as new 2.) Career/ Networking 3.) Products/Serviceslearn about products, feedback, promos, coupons 4.) Lifestyle / Entertainment, Gaming

Source: Nielsen study 2013

Comparative Study of SNS in China & Japan

In addition to having the worlds biggest internet user base, China also has the worlds most active users for social media(more than 300 million) 80% of the people have multiple socialmedia accounts(primary with local players) compared to just 39% in Japan. Japan has the worlds 4th largest internet population exceeding 3.6 million.

Percentage of Japanese web users visiting a social networking site is still much lower than the global or regional average.
Online retail reach in Japan is 86%, amongst the highest in the world. Japanese web users spend significantly more time on entertainment sites than global audiences (Youtube & Nicovideo). Japanese people generally prefer to be anonymous while going for a social networking site.

Chinese Government is known for strict censorship when it comes to social networking.
Local social media sites dominate, with no access to Facebook, Twitter, Youtube etc. 66% of Chinese consumers relied on recommendations from friends and family, compared with 38% of their US counterparts.

Top 5 Social Networking Sites in China with their US Equivalent Top 12 social media networks
Facebook (1.15 billion MAUs) YouTube (1 billion MAUs)

Qzone (712 million total users)

Sina Weibo (500 million total users) WhatsApp (350 million MAUs)

Google+ (327 million MAUs)

Tumblr (300 million MAUs) LINE (275 million total active users)

Twitter (240 million MAUs)

WeChat (236 million MAUs) Tencent Weibo (220 MAUs) LinkedIn (184 MAUs)

Top 6 SNS in Japan

36 million users

LINE is a cross-platform communication service app, offered for free by Naver . It allows users to send text messages and to make free calls to other users who have the app installed on their smartphones. Recently Twitter launched a new service called Lifeline in Japan - the first region in the world to receive the service that suggests which official government Twitter accounts should be followed if disaster hits.

30 million users

40 million users

Mobage is a portal and social network for games. It provides a platform to developers to deploy their games which can be discovered and shared by the users.
GREE focuses primarily on mobile games and over 90% of its users access the site via their mobile phones. It makes money by selling virtual goods to users. Launches in 2004, Mixi is based on a private network with online pseudonyms. Mixi is used by people who want to control their network depth, people who want to stay in their comfort zone. Facebook has made progress recently as a business network among Japanese rather than LinkedIn. The formally paranoid, pseudonym-using Japanese use their real names to drum up business on Facebook.

29 million users

25 million users

16 million users Source:www.digitalstrategyconsulting.com

REVENUE STREAMS - FACEBOOK

TEXT AND DISPLAY ADS 60% Revenue US$ 1.2B Primarily self-serve ads that can be highly targeted to appear to specific users. Provides real-time feedback on the size of the target audience and the suggested bid range to achieve impressions. How does it make money???
Cost Per Click(CPC) - Advertisers pay only when users actually click on the advertisement Cost Per Thousand Impressions (CPM) - Based on the number of times these advertisements are displayed for a user

CREDITS ON GAMES AND APPLICATIONS 17% Revenue US$ 343M Facebook has its virtual currency called Credits It is the exclusive payment method for most of the games created by Zynga Facebook users can also purchase virtual gifts from third party applications using Facebook Credits eCOMMERCE 11% Revenue US$ 222M Partnered with retailers like Amazon and eBay to leverage its large base of users looking for advice before making a decision as to which product to buy This business is forecasted to grow significantly

REVENUE STREAMS - FACEBOOK

REVENUE STREAMS - TWITTER

PROMOTED TWEETS Advertisers pay for promoting Tweets related to their product or purchase these tweets The promoted tweet will be listed at the top of Twitter search results with the name of the company PROMOTED TRENDS The trends purchased and promoted by advertisers appear at the very top of the 'Trending Topics' list, presented for user perusal. Clearly marked as a promoted trend, it leads the user to a list of relevant tweets, among which promoted tweets obviously top the list. PROMOTED ACCOUNT Twitter has also created 'Promoted Accounts' for advertisers, which are shown in the 'Who to Follow' section, presented to users. These accounts are charged on a 'Cost-per-Follow' basis ENHANCED PROFILES Brands with such profiles have the freedom to feature their logo or use any other form of visual branding on the page Also list promoted tweets at the top, share tweets with image and video links SELF SERVING ADVERTISEMENT PLATFORM Automated system for advertisers to custom-design their ad campaigns on Twitter Advertisers can choose their budget and select advertising options accordingly, with geotagging DATA LICENSING Sells something known as the "firehose", its public data, which often adds up to about 500 million tweets each day Companies can dive deep into the data to analyze consumer trends and sell their insight on to other brands and companies

REVENUE STREAMS - LINKEDIN

CORPORATE ACCOUNTS / TALENT SOLUTIONS - US$ 224M
Largely recruitment orientated packages that businesses buy which allow them full access to the whole LinkedIn user base This is LinkedIns largest and fastest growing revenue stream Represents 57% of total revenue

ADVERTISING / MARKETING SOLIUTIONS - US$ 90M Falls into two categories : Corporate For large spends and User By swiping debit/credit card Linkedins inmail messaging platform to deliver relevant messages to specific audience segments Polls to find answers to their business and market research questions Represents 23% of total revenue PREMIUM ACCOUNTS / UPGRADED USER ACCOUNTS - US$ 78.6M 4 Levels of user accounts Free -> Business (INR 1000) -> Business Plus (INR 1900) -> Executive (INR 3500) Represents 20% of total revenue

How Social Networks impact our Lives

Most of the people take action offline as a result of interacting online
Smartphone owners use apps to achieve their personal goals- improve health or achieve fitness Face book fans seem to enjoy a bit of everything Twitter users favor event attendance or activities Pinterest enables to take up a hobby or buy something

How do organizations benefit 1.) Increased Spending: Pinterest, Face book made customers buy online, view ads 2.) Participation: Face book, Twitter prompt participation in class, sport or conference 3.) Create hobbies: Pinterest, Face book help reading books, online gaming, venue to share ideas 4.) Networking: Direct contact or an in-person meeting

Impact of SNS on Telecom

SNS
have become primary communication media for a new generation generating a significant amount of online traffic opens the door for potential revenue generation Shift in communication pattern -Point to point two way conversation to many to many collaborative communication Revenue from SMSs have already fallen to 3-5% of total revenue, from about 7%-8% about a year back There is nearly 10% decline in international minutes -control of the communication environment is transitioning from Telco's to open Internet platform providers

Impact of SNS
Shift in communication pattern has given rise to following business model Open & Free offers alternatives to traditional point-to-point communication services on open Internet platforms provide basic communication services such as VoIP for free or at very low cost eg Mobile operator 3 in UK and Italy has partnered with Skype Gated Communities focus is more on many-to-many communications walled-garden approach in which operators facilitate collaboration services that will appeal to users and enterprises with a preference for the more secure and reliable communications eg. Tata DoCoMo launches social networking data packs for facebook and twitter, Tencent Holdings launched a WeChat SIM card on China Unicom

Impact of SNS
Mainstream Internet sites and major consumer brands are beginning to recognize the value of social networking, to communicate with customers for the potential advertising dollars it may generate and also for e-commerce and the built-in mechanisms it employs Telcos are getting in on the act: many initiatives have been taken that ranging from simply enabling online social networking sites to building their own, proprietary social networks.
95% of telecoms plan to maintain or increase their social media budgets this year 68% telecoms today use social to engage loyal customers by 2015, it will increase to 83% 59% of telecoms today bring customer ideas to market by 2015 it will increase to 86% eg,. SingTel, StarHub

Latest trends
Mobile chat applications like WeChat, line, etc. are moving into the social networking space with the introduction of profile pages Facebooks overall growth in active monthly users has slowed to 18% Y-O-Y. By contrast WeChats users have tripled to 272 million from 85 million the year before.

Top 3 trends 1. The movement towards fewer but more stable connections. 2. Social networking is more powerful when focusing on a common theme.

3. The need for more personal and intimate networks.

Photos create the most engagement on social networks Niche social networks are fast growing. Eg. Instagram, Vine, etc. All new social networking startups are mobile first. Eg. Instagram, Path, etc. 71% of the worlds largest brands have adopted Instagram, which is more than the adoption rate of Google+ and pinterest Indias contribution to the crowded SNS market could be Vebbler launched in July this year.

Trends(contd.)
The increase in usage by the 55 to 64 year olds is greater than 100% for Facebook, Twitter and Google+. A new study from Searchmetrics finds that seven of the 10 most important SEO ranking factors are now related to social media Social networking is the new market place. Eg. Xiamoi sold 1,50,000 units of its new phone through WeChat in less than 10 minutes. In Q2 2013 South Africa had the highest proportion of active Facebook users: 68%. Established social networks are working towards providing access via feature phones in addition to smartphones.