Social networking sites have climbed to new heights this past year. Today, more than two-thirds of the Internet population visits these sites. In a span of 24 hours, billions of eyeballs hover around social networking sites. However, monetizing these platforms remains a tough code to crack. Accordingly, the year 2010 is all about identifying new profitable models in the social networking arena.
FACEBOOK: Underneath Its Surface Lies Dollars Waiting to be Unleashed
The undisputed leader in social media platforms is Facebook, now with more than 350 million unique users globally. It holds in it the power to engage users like no other platform can. Studies have shown that an average Facebook user visits the site at least once a day and spends 55 minutes there.
While translating Facebook’s popularity to cash is not an easy road to take, it is not impossible. Facebook may have the potential to provide a monetization template that would transform how social networking is seen and what it is believed to be.
How?
Advertising. In the first half of 2009, Internet advertising revenues reached a whopping $10.9 billion and Facebook alone contributed $435 million to that total. As a growing site with 350 million users, these numbers are just the tip of the iceberg.
Let us backtrack and take a look at Google ads. Today, every ecommerce practitioner knows the importance of purchasing Google ads. These ads did not just appear out of nowhere. Google made sure that the value of their service is properly communicated. Look at Google now – a global corporate powerhouse valued at approximately $200 billion.
By exploring this untapped potential, and leveraging in the power of friends and connections, Facebook can and will earn its rightful share of online ad profits. All it takes is aggressive marketing and explaining. Eventually, Facebook ads will be an integral part of 21st century marketing.
Ecommerce. Social media and ecommerce combined is a powerful combination that could change the way consumers shop. Launching Facebook as an ecommerce website will revolutionize the shopping experience. Imagine being able to do everything there – from socializing to shopping. Ecommerce websites are in for a treat as shopping on that particular site will appear in a customer’s news feed and can be shared to friends of friends.
Facebook should retain its users. Rather than driving their almost half a billion users away from a site to make a purchase, everything could be done on the same platform with a few tweaks here and there. Facebook would be rewarded financially through increased online ads, getting a percentage of sales of ecommerce sites, or charging a fixed amount to have a storefront.
Premium Subscription. By offering a fee for premium subscriptions without pushing away users, Facebook will most likely churn out substantial revenues. How can it be guaranteed that users will pay for a premium service? Take for example Facebook’s virtual gifts. People buy them with real money so they can send gifts to their friends. Offering a dollar for, say, high-res photo uploading or longer video uploads could reap exponential revenues. Even if only one-fourth of Facebook’s users take advantage of this premium option, it earns the company an extra billion in profit a year.
Improvements and adjustments on Facebook’s already incredible platform will open roads of revenue opportunities. Facebook can become what Google was before – the new breed of digital advancement.