We wrote a news story a few weeks ago about how 2009 was the year that social network sites would be forced to develop revenue streams and money-making opportunities. They´d have to - or they´d perish.
Well it looks like Facebook have found a critical revenue stream. And it´s not from advertising, which a lot of people mistakenly believe is the major reveneue stream for social networks. The real goldmine for social network sites is the rich data that they have for all the users. And Facebook will soon allow companies to conduct market research for their products/services amongst the facebook base.
In an interview with The Sunday Telegraph, Randi Zuckerberg, Facebook´s global markets director said multinational companies had been very impressed by the abilitiy to get rich real-time feedback from the million of users on the site.
"I had tonnes of people saying ´this could be so incredible for our business´. It takes a very long time to do a focus group, and businesses often don´t have the luxury of time. I think they liked the instant responses," she said.
Good news for Facebook and social networks in general. The thing with social networks is that they´re not "normal" websites. Therefore the "normal" means of monetising a site (e.g. advertising) don´t apply. It would seem that Facebook are innovating in this space. It´s up to the other social networks to do the same.
You can read the full article here
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About Me
- Matt Holt
- London, United Kingdom
- Matt is Business Director at Kinship Networking. Kinship Networking is a completely new type of marketing agency, dedicated to using social media to help businesses to build stronger social relationships with their customers, employees and shareholders. After graduating with a degree in Management Science, Matt occupied various marketing roles for companies such as Microsoft and Reuters. He then joined Ogilvy where he worked above and below-the-line on BT, Cancer Research UK and First Great Western. Most recently he joined Stephens Francis Whitson, a specialist direct marketing agency, where he worked on a number of accounts including O2, More Th>n and Rocco Forte. Matt has worked on a number of new business ideas within the social networking arena, including the development of a site aimed at helping people stay in touch with their various groups of friends, at the start of 2001.
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