Monetizing Social Networks

I saw an interesting post by Bill Ives on commercializing social networks. For anyone who has been to any of the latest American Marketing Association Hot Topic events you have heard me speak of the three ways to monetize social network systems such as Friendster and Myspace and all of the others.  There are two commonly held monetization models for these systems; 1. Sell advertising and 2. Sell premium subscriptions. There is a thrid and more sinister method that I have been speaking about for months.

These social network sites are filled to the brim with mutually articulated social connections - the kinds of connections marketers really want to know and understand.  If a marketing company could physically see the anatomy of affinity groups as well as central figures they could strategically drive product samples and swing influence from the center of the group out. Companies could tap their own sales records and search out central people who may be product evangelist.  The information's context is so rich and volume so vast it is hard to comprehend, but to the skilled annalist there is untold efficiency and profit lying just on the other side of the log-in screen.

Comments

[Eric Janssen]

This is interesting. I'd love to hear a lot more on this topic - please keep me up to date.