Social capital, monetization of media
With their activities on social networks, users are creating a social capital that they increasingly want to turn into tangible returns. How can this be done, and what is at stakes? Social networks also reshape profoundly the world of media, how can editors and journalists survive in the digital world, what are the new monetization models?
Brian Solis, Social currencies.
We all lead three lives in the real world – Public life, private life, secret life.
Online, those boundaries are much more blurred.
What can you do for your future? Your online future is in your hands.
Employers check people before they interview them Debt collectors use Facebook to track and even shame debtors. You are already indexed. What you say online contributes to your social capital, and things like Facebook mean that some of that is outside your control too – other people can contribute to your social capital.
PeerIndex and Klout and others are creating indices for people on the web. Already, some US hotels ask your Twitter address when you check in. They check your social capital and suck up BIG TIME – if they think you are worth it.
Brian Solis' Peer Index
Banks already secretly use your social graph to assess credit risk. How many of you are connected on Facebook to someone you don’t know? [All hands go up].
That is the bad news, but the good news is that what works against you, can also work for you. You need to know what to do to manage yourself.
Your stature in a community is based on your investment in it. Key measures:
- Trust
- Relationships
- Reciprocity
- Authority
- Popularity
- Recognition
Social Objects = Social Currency
The social object is the thing that you say or do online. When you publish it, the effect is measured – do people comment, tweet, re-tweet etc. Every network measures you in different ways.
The currency of social media however is action.
Social Capital vs Influence.
Influence is the ability to cause desirable outcomes. This is NOT the kind of influence that Klout thinks of influence. Reach and influence are different, very different.
companies are starting to understand the value of social capital. Tom’s Shoes is a sho business that gives a pair of shoes to a needy child every time you buy a pair of Tom’s shoes for yourself. http://www.toms.com/international
Your legacy is in your hands. You need to understand how this all works, so you can work it to your advantage. Or else.
– –
Philippe Gendret, Monetization of media.
Edipresse Suisse is one of biggest publishers in Switzerland.
Who is making money?
- Probably no more than top 5 news websites in Switzerland. Business model = advertising./
- The top 5 classified websites are profitable. Top jobs, dating and home sites are profitable. Business model = transaction.
- Top 5 services websites are profitable. Google, ifolor, search.ch. Business model = advertising.
Beyond those sites, therre is probably not any significant level of profitability. The web is not comfortable for press groups and publishers.
- Users still focus on strong established brands.
- The web may be mature in terms of traffic (stagnation of user growth
- News revenues from advertising not from content’s value. Swiss online advertising market running behind.
2010 was the year of Mobile in Switzerland.
- Mobile = 25% of web traffic consuming 40% news, 60% services.
- Smart phone penetration is significant.
2010 was the year of the iPad tablet in the world.
- UK, 500,000
- DE, 300,000
- France – 450,000
- Norway – 50,000
But, not that significant in 2010 in Switzerland – yet.
- CH – 50,000
Expected business model for Swiss readers…
Philippe ran tests for Edipresse Suisse with small user groups (200) using prehistoric tablet last year. (As iPad launched) He found that there were two distinct groups. Readers and Surfers.
- Readers LOVED a simple device that was cheap, easy to use. (c. 70%)
- Surfers NEED much richer functionalities and richer experience. (c. 30%)
People hated the subscription model.
Edipresse Portfolio Content Value
Conclusion for Swiss Media
- Multiple devices, multiple circulation channels. Target for media is mass market.
- Apple is huge boost for market
- Demand for tablets today comes from geeks.
- Digital velue services are not yeti ntegrated by consumers
- Brilliant time for R&D
– –