Monetized the Social Web |
Posted: August 22, 2018 |
The thing I love most concerning the web is change is the only constant. Social media and networking was 'the trend' the past 3 years running but it is crunch some time to businesses are now shouting "show me the amount of money." This transfer of spend was recognised when the IAB announced recently the Internet was greater than TV in terms of online spend. It's even predicted that internet advertising is the thing that will drive recovery inside the advertising industry using the expected knock on effects. But the appeal of the social web itself has always been that it is people centric. It's less about 'the man' plus much more about 'the people'. So deriving revenue from something is one of the people is obviously destined to be tough. What's more, the root issue could be the fact it is always been free to use and the rise in its popularity will not be related to contrived promotion but to organic growth that emerges through the should and easy connecting online websites. The challenge therefore for advertisers is at earning profits in the free social web. Today Twitter unveiled the initial sign of a revenue model rolling around in its promoted tweets. The premise could be the same as Google AdWords with sponsored tweets appearing near the top of serp's pages and so on. The development has generated mixed reactions but the main underlying message this new development conveys is always that the web (more to the point the social web) can't survive with no power to make some money. Free is no longer an order during the day really. One example that proves this aspect could be the strategy Rupert Murdoch is adopting. Murdoch may not be inside the online community business himself but he's no fool.... He has seen the power of online revenue streams and the man too is wanting to acquire his share with the pie by looking to monetise the net versions of The Times or The Sunday Times online. There's been a decent amount of backlash at the paywall around information that's previously been free and Murdoch himself is playing a risky game. I, first will not be taking on a cent and will probably switch to another supply of equally good content. As for Twitter's strategy, maybe the bigger brands will be thrilled to shell out money to sponsored tweets - but the return on your investment will still only come if these promoted tweets are 'retweeted' and spark a viral effect. If 'the people' don't buy in, the model is doomed. It's a recognized undeniable fact that despite having Google's sponsored ads or paid listings that 80% of users like the organic/unpaid listings - this is exactly why seo is now a real heaving industry. The downside to monetisation from the social web is at the same time we move into the next phase of web 3.0, the power has shifted and today lies solely around, 'the folks'. Users can wield their wand (or networks) to create or break a brand/business. And frightening simply because this might seem for businesses, it's frightfully refreshing. Why? Because it implies that businesses need to continue to work hard to earn our trust, to produce it worth our while and also to provide us with the service we deserve as consumers. What entrepreneurs have to realise is that - have this right and monetisation, revenue generation and profit will just fall in line.
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