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Idea!! Monetizing Social Media and Building Recommendation Engine

January 31st, 2010 2 Comments »

Idea / Abstract

The internet space is exploding… Innumerable advertising opportunities galore!
The marketer is looking for…

Cost… Audience Footfall… Audience Demographic… Conversions.. And most importantly ROI!

The options?

Search Engine Marketing… Search Engine Optimization… E-mail marketing.. And the latest trend Social Media

Some facts

SEM and SEO is increasing in cost with CPC in SEM going as high as $10 per click and SEO budgets crossing millions of dollars every year. The low cost per touch email marketing with its downward response probability trend fails against social media that’s engaging today’s consumer!

The Challenge…

How to target the right audience in the least time and the least cost?

Strengths:

  • Everyone wants to be on Social Media: it’s the new buzz word in the digital world
  • Social Media is powerful: Rich information about what is the consumer looking for!!
  • High Audience Engagement: Aged between 18-35 spend around 3 hours on facebook during Jan 2009 with 300 M user base.(Source: Nielson’s)
  • Viral Nature: If you have a great idea… it will spread like wildfire!

The Weaknesses:

  • Distributed Audience
  • Low Predictability: Media is controlled by the audience

The Facts:

  • Wide variety of social sites like twitter, facebook, MySpace, LinkedIn exist
  • Established micro blogging users having a large number of followers & group members

The bright idea:

Leverage the Social Media network using the established micro bloggers as brand ambassadors and inject any Company’s content/ads into social media sites

The big Question…

But why would these users would promote any company in their groups?

That’s “Social Media Affiliate Engine” where revenue will be shared across all the top micro bloggers for impressions and conversions.

Social Media Affiliate Eco-System

Social Media Affiliate Engine-image.bmp

Advantages:

  • Sharp Targeting the consumer – the marketer’s dream!
  • Large number of Quality Impressions in lower cost
  • Opportunity to personalize communication with the consumer who is already receptive
  • Opportunity to build a 2 way dialogue and interaction with the audience
  • Builds stronger brand by consumer engagement and being present where the consumer is
  • Adds value to Search Engine results, which indirectly increase traffic through Search Engines
  • Helps in finding results through non-branded keywords
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