domingo, 8 de febrero de 2009

Social networks... money makers?


Facebook rejected to be bought by Yahoo! in 2006... they probably thought: "only $1 billion? we can milk the cow and make more than that.. ". They certainly have ways to do it. The first thing that comes to our mind is the ads they stick along the side of the page. The click through rate is really low (under 0,1%) but companies are willing to pay loads of money to be seen by the huge amount of users that Facebook has.
Not only the ads make this social network profitable but a good monetizer may be the valuable information they possess about their user base. It is a great amount of data for marketers to be used in their favour. They have a representative sample of the trends and demand that society has in real time.
Another way to profit out of Facebook is to charge brands that want a group with their name and logo.

What other ideas are to capitalize on Facebook? imagine an application such as geo challenge (you are challenged to guess the name of several countries with a time limit given only their silhouette). It would be interesting for McDonalds to have a similar application (questions obviously adapted to the matter of hamburgers, for example "when was the hamburger discovered") and offer discounts for the people that top a certain score. This would be appealing for users (challenge + reward in case of win), companies (promotion) and Facebook (companies are charged to have their apps in Facebook).

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