Social media ROI is a common topic in this community. How do we prove that our online efforts are making a difference? Kyle Flaherty wrote a great article at how we can look at this.
The next generation is particularly tech savvy, and a recent social media campaign for Twilight has proven that networking with your audience can prove that good social networking can turn into revenue. The social media campaign that involved widgets and networking resulted in a soundtrack that was #1 on the Billboard charts before the movie was released, high pre-sales in movie tickets and a continual presence in the best selling category for the books. Read more about it in The Standard.
The soundtrack marketing effort has been highly successful, ranging from videos released on author Stephenie Meyer’s site to exclusives available for fans depending on format and place of purchase: iTunes has a digital booklet and three additional songs, while the physical CD contains a poster from the movie, with several different posters randomly placed in the CD cases.
There was also significant buzz created by exclusively debuting the trailers online for the fans.
Online ticket sales are booming as well, spurred by everything from movie trailers debuted exclusively at different sites to widgets available for social networking sites. Those who purchase presale tickets from MovieTickets.com or Fandango receive a code for a free music remix from iTunes.
Why do you think this is such a big social media phenomenon? We already wrote in August about this community with the book series, and now it’s translated into revenue for the movie industry. Now this social media and networking has translated into revenue for the record industry and Hollywood. What can you take from this example and use for your campaigns?
The main topic of conversations and thoughts running through everyone’s mind, seems to be the economy and how it will affect them. The Community 2.0 industry is not above these concerns. This article, discusses the web 1.0 bubble that burst, and how that may be mirrored in today’s time with Community 2.0. As we have reported before marketing on social network sites has not been proven as valuable yet, and, as this correlating article mentions, “social networks are struggling with how best to monetize their millions of users”. The article further provides this quote from Debra Williamson, senior analyst at eMarketer, as saying:
“As in many other developing advertising markets, much of the spending on social networks is driven by leading-edge marketers who are willing to take risks”
Since organizations are still unsure of implementation methods that will maximize their ROI, and are taking a harder look at their budgets, do you think that the world of C2.0 will see a large decrease in their advertising revenue? In risky times, trends are generally to follow tried and true approaches as opposed to risking money on new concepts. Conversely, some feel that it is important to take risks at exactly times like these. What are your thoughts?
As blogged about in this post, Hitwise, stated in June that ‘MySpace and Facebook comprised almost 90% of the US visits to social networks’. This led the author to make the interesting point maybe this is the case not only because social networks are relatively new, but maybe because this genre of sites are still learning how to generate revenue. As the author states, ‘I blame it on not thinking of a better way to monetize social networks in general.’ He goes on to mention that in his opinion LinkedIn is on the right path, especially since their average user age is 40, and they have a higher purchasing power. Since the age is younger for both MySpace and Facebook, and people are still unsure how to leverage them from a marketing standpoint, the author argues that ‘we’re stuck with the traffic=advertising=revenue business model’
What are your thoughts on this? What do you think is the next step in the evolution of the business model for social networking sites?