Monetization of Social Networks
Monetization of Social Networks. This is the hot topic these days, with a large number of blogs and opinions, and even a number of conferences devoted to this single issue alone. However, I believe many of these discussions miss the entire point that to look at “monetizing” social networks is like asking teenager to pay for music – the concept is a foreign one and irrelevant . Publishers and advertisers need to change their entire outlook, and I would suggest- reluctantly since I don’t like to get hung up on word, their language- Let’s abolish the word Monetizing – it is demeaning to consumers, as it treats them like tools for making money. It is time to look at consumers as one of the three elements in the new commerce ecosystem: producers, consumers, and the medium. In fact, Social networks can be a very powerful medium and generate handsome profits for their organizers, provided they understand the true power of social networks as a medium to allow advertisers and consumers to connect. How, you ask? More on this in the future, but I can assure you it is not through “targeted ads”, or “social graph “referrals. Both these concepts, IMHB, are highly oversold. The enlightened advertiser will seek to first find what products and services its constituents need, then proceed to fully understand the habits, preferences, and values of its consumers, and finally align itself with those preferences so that the consumer can relate to it. Only then, can the advertiser expect the evolution of an organic relationship the consumer, one that will last a long time and cannot be easily broken. This is best doable through a social network structure, so it is ironic that many find “monetizing” social networks difficult, since in my opinion, they are one of the best tools for building long term value for advertisers.
