Social Media and Revenue Models

Hyper-Social Organisation

• A hyper-social organisation uses social media to transform interactions with customers, employees, and partners into mutually satisfying relationships with them and their communities.

Revenue Models for Social Media

• Advertising: pay-per-click, display or banner ads, mobile ads, classifieds, or digital video ads
• Freemium: offers users a basic service for free, then charges a premium for upgrades or advanced features
• Sales: apps and virtual goods, affiliate commissions, donations

Does Mobility Reduce Online Ad Revenue?

• Number of mobile devices to reach 10 billion by 2018
• Mobile data traffic to increase by eleven-fold
• Average click-through rate of smartphones is 4.12%, but just 2.39% on PCs
• Conversion rate: frequency someone clicks on ad makes a purchase, “likes” a site, or takes some other action desired by advertiser
• Use of ad-blocking software growing by 69% per year

Addressing SMIS Security Concerns

• Develop and publicise a social media policy to delineate employees' rights and responsibilities
• Intel's Three Pillars of SM Policies: Disclose, Protect, and Use Common Sense

Social Media and Customer Service

• Relationships emerge from joint activity, customers have as much control as companies
• Product users freely help each other solve problems
• Selling to, or through, developer networks most successful (e.g. Microsoft's MVP program)
• Peer-to-peer support risks loss of control

Social Media and Inbound and Outbound Logistics

• Numerous solution ideas and rapid evaluation of them
• Better solutions to complex supply chain problems
• Facilitate user-created content and feedback among networks needed for problem-solving
• Loss of privacy: open discussion of problem definitions, causes, and solution constraints

Social Media and Manufacturing and Operations

• Improve communication channels within organisation and externally with consumers
• Design products, develop supplier relationships, and improve operational efficiencies
• Crowdsourcing
• Businesses-to-consumer (B2C) marketing
• Internal-facing communities use social media to make organisations better

Social Media and Human Resources

• Employee communications using internal personnel sites (e.g. MySite and MyProfile in SharePoint)
• Finding employee prospects, recruiting candidates, candidate evaluation
• Place for employees to post their expertise
• Risks: forming erroneous conclusions about employees, becoming defender of belief or pushing unpopular management message

What Is the Value of Social Capital?

• Value of social capital: number of relationships, strength of relationships, and resources controlled
• Adds value in four ways: Information, Influence, Social credentials, and Personal reinforcement

How Do SMIS Increase Social Capital?

• Capital: investment of resources for future profit
• Types of business capital: Physical capital, Human capital, Social capital
• Social capital: social relations with expectation of marketplace returns

This quiz explores the concepts of hyper-social organizations, monetizing social media, and revenue models such as advertising, pay-per-click, and freemium.