In this presentation, you will find a summary of the social media ecosystem : Users involved in conversations and interactions with various device type (laptop, desktop, tablet, smartphones) as well as more sophisticated usages (publishing, sharing, playing, networking, buying, localization) on various niche services or on generic social platforms (Facebook, Twitter, Google+). I've also tried explaining the business models of facebook, twitter etc. Small medium enterprise owners can also learn how they can advertise on these social media platforms. A full section is dedicated to smartphone era.

1. An Industry Overview On
by: Siddharth Gulati

2. What is
?
• Interaction among people
• Create, share, and exchange information and
ideas
• Individuals and communities share,
co-create, discuss, and modify user-generated
content

3. - #1 Social Networking Site
Founded in Feb, 2004 by
First Name Mark
Last Name Zuckerberg
Headquarters Menlo Park, CA, USA
facebook now allows anyone who claims to be at
least 13 years old to become a registered user
of the website.
Area Served Worldwide ‘05 - Present
Revenue $5.1 Bn
Site Ranking Alexa - 2
Active Users 1.15 Bn
Employees 5,299
2012’ -> The company went public on May 18, 2012,
opening on the NASDAQ with shares trading at $42.05.
Subsidiaries Instagram
Competitors
http://www.crunchbase.com/compan
y/facebook

4. 5 Cs OF Facebook
The 5C Classification of Facebook is done
under the following heads of marketing mix:
Customer
Company
Competition
Collaborators
Context

5. CUSTOMER
Demographics
Lifestyle
Behaviour
Geographical Location

6. Company
• The Facebook page of a company can teach us a lot about the
target
audience.
• Humanize the company.
• Build a community on the Company’s Facebook page.
• Facebook is good for SEO (search engine optimization)

7. Benefits of having Facebook Profile
Staying
Connected
Finding People
Sharing
Promotion
Getting
Together

8. SWOT Analysis
Strength
Holds the largest market share currently.
Provides platform for millions of applications
including Zynga,
1.15 billion monthly active users (MAUs) as of
December 31, 2013
Creates Value for Users
Connect and share with your friends
everywhere, 2nd most successful mobile app
Discover Learn and Express yourself
Creates Value for Marketers
Facebook offers marketers access to a
vast consumer base
Offer marketers the ability to include “social
context ” with their marketing messages

9. Weakness
Safety
Liabilities regarding bugs and problems that users face
when operating the website
Plagued by Privacy Issues and fake accounts can be
created easily
Financial Issues
Facebook’s catastrophe of an initial public offering — the stock reached a new low closing at $18.06.three
months after the offering, the company lost more than $50 billion in market value.
Technological and Political Issues
Facebook was hit by technological glitches due to which
the site was down for a considerable amount of time.
Reported in Mirror 21st October.
Problems faced with posting of antisocial and
antireligious content. Facebook also faces bans and
sanctions in countries like Syria, Iran, China .
dealbook.nytimes.com

10. Opportunities
Mobile
Advertising is and Consumer
Advertising is the
will be an
segment that can
Behaviour is
help in generating
opportunistic
analysed for
more cash flow.
approach in
business. Business Enable developers
reaching target
can collect user
to build great
markets globally.
Promotional offers data through polls social products
to draw customers. and surveys.
using the facebook
platform.

11. Threats
Competitors
Safety
• Existing Competitors like Twitter,
Google+, Tumblr, MySpace.
• New Entrants can enter into the industry
very easily.
• Companies that develop applications,
particularly mobile applications, that replicate
discrete Capabilities provided, such as photosharing, messaging, and micro-blogging
• Spamming
• Photos can be downloaded easily .
• Privacy can be breached.

12. Competitors
• Google+ (300mn+), twitter (883mn+), Orkut ,
MySapce.
• Youtube(65 hours/minute), Quora, Tumblr,
Daily Motion, Wikipedia.
• Traditional players in optimizing advertising
campaigns.
Google, Yahoo
Facebook Annual Report 2012-13

13. Collaborators
•
•
•
•
Advertising Agencies
Social Media managing agencies
Application Developers
Partnerships , Acquisition and Mergers :
Instagram, tagtile, Atlas, Friendster, Octazen,
Lightbox, Face.com and many more.

14. Pest Analysis
Political
Economic
Social
Tech
Removal of Anti-social and
anti religious content
Greater affluence leading
to more users
Viral online
Potential marketing
influence is
radically increasing
Online Privacy
Does not require
elaborate budget
On Issues of allegations
like; Treatment of its
users
Increased
broadband speed
and penetration
Ownership of social media
content
Free of charge content
Corruption
Faster access to
information than
ever before
Ban on Fake accounts
No revenue for
Scams
companies, more of brand
equity
Monitoring of marketing
done by clients of social
media companies
Better online
advertising
Women Security
Child Safety
Hate Speech
*There are no strong policies by government till now for social media.

15. Porter’s Five Forces
New Entrants: Low
barriers , low loyalty, low
risks, easy to challenge
established business,
almost no sales force
required
Buyer Power: No switching
costs, users can maintain
‘n’ number of accounts,
very little diff. in service
provided
Intense Rivalry: There's
a large pool of sites
fuelled by VC monies,
intense competition
Suppliers: Independent
application, widgets,
games developers,
advertising agencies
Substitutes: Any Social
media service would be a
substitute, and internet
site with large user bases
like Amazon, Zomato,
flipkart, etc may create a
networking component.

16. Different Products under Social Media
Network
Personnel, pro,
mobile, tools
Share
Videos, Music,
Photos, Links
Publish
Blog, Microblog,
Stream

17. Stakeholder Analysis
Internet
users
Cyber
Cafes
Content
Creaters
Home
based
businesse
s
Ad
agencies
PR firms
App
Develope
rs
B2C/B2C
Companie
s
Surveyin
g
Companie
s
Start-Ups
Game
Developers
Social
Media
ECommerce
companie
s
Laptop
Companie
s
Bloggers
Job
Seekers
Web
designers
Mobile
Companie
s
Mobile
Companies
Social
Media
Agencies

18. Value Creation
Procurement
Website Infrastructure
Data Center’s
Softwares
Scripts
Content
IP Interconnection
Network Services
Network Hardware technologies
Networking Cables
UX

19. Human Resource
250,000
Job Applications in 2012
https://www.facebook.com/careers/teams/people

20. Technology
Memcached
HipHop for PHP
Haystack
BigPipe
Varnish
Scribe
Hadoop and Hive
http://royal.pingdom.com/2010/06/18/the-software-behind-facebook/

21. Memcached
Caching layer between the web servers
and MySQL servers because accessing
databases is relatively slow.
HipHop for PHP
PHP is a script language that runs
natively slow when compared with the
code that runs on server.
Haystack
High-performance storage/retrieval
system.
BigPipe
Dynamic web page serving system. Each
section is served into pagelets.
Cassandra
Distributed storage system with no
single point of failure. Facebook uses it
for its Inbox search.
Scribe
Flexible logging system that Facebook
uses for a multitude of purposes
internally. To handle logging at the scale
of Facebook, and automatically handles
new logging categories
Hadoop
Hadoop is used for data analysis.
Thrift
This is an internally developed crosslanguage framework that ties all
different languages(PHP, Erlang, Java and
C++) together, making it possible for
them to talk to each other.
http://royal.pingdom.com/2010/06/18/thesoftware-behind-facebook/

22. fb Advertising Model
Segmentation
- How to Target Your Audience ?
Ads Optimization
– Tell the Right Story
Scheduling Your Campaigns
Managing Your Budget Wisely
Bid Size Affect Click-Through Rate - The quality of clicks is affected by who see your ads.
Low Max Bid -> High FB users (less receptive to ads) -> Low Quality Users -> -ve Click Through Rate
Tracking Your Results
http://www.qwaya.com/facebook-ads/facebook-ad-marketing-strategies-and-tips

25. Infrastructure

26. Offices
http://officesnapshots.com

27. Problems With Present Social Media Sites
• Twitter should introduce #Chatting!
•Messages wipes off while sending direct messages
•Phone app Needs to be optimized for 2G networks, currently very heavy
•Lots and Lots of Spam on almost all platforms.
•Blocked!
•Bulk messaging option not available.
•Group chats, a big no no!
•Repeated content.
•News feed of friends getting missed because of sponsored feed.
•Blue Theme Needs To be revamped, users are getting bored.
•High volume of advertising
•Very few people in India knows how to use twitter.
•Facebook chat stickers creating mess, difficult to locate.
•Problem in tweeting from mobile app, it almost never tweets on IOS.
•A more better API integration with mobile phones.
•Fake Accounts

28. The

29. Revenue Model Of Different
Social Media Sites
facebook
Devices
• Desktop
• Mobile
• Tablets
Platforms
• Browsers
• Application
Facebook
features
• Increasing
internet
penetration
• Increasing
spend among
age groups
• Enlarging
geographical
reach
Q2 ‘13: $1.82bn
88% from ads (~41% mobile)
$
Behaviors
Business
Model
• Personal info
[status, msgs,
pics etc]
• Innovative
ways of
presenting
these [
timeline,
graph search]
• Add-ons:
groups,
events,
pages, LIKE!
Users
• Increasing
user
engagement
• More user
generated
content
• More friends
• More time
spent on
facebook
• Enlarged dev.
ecosystem
• Advertising
based (CPI
OR CPC)
• New feed ads
• Sponsored
stories (for
mobiles)
• Credits in
games i.e.
virtual
currency
• Gifts
2013: 1.15 bn Active users
51% growth in mobile users
(819mn)

30. facebook moves into Big Data to help
advertisers measure ROI
“Connecting the DOTS”
Problem: Proving that ads can spur sales
Solution: follow people going to grocery store, car stores etc
(this doesn’t means fb is stalking you!). Basically, fb is
purchasing data from Datalogix to track the purchases of its
users by which it is trying to make a connection b/w its
advertising and what users want to buy. Fb is matching this
information with the specific users. It relies on email
addresses and other information people submit when they
open a fb account.
Results: 70% of the time, every $ an advertiser spends on
Facebook gives it $3 back in incremental sales.

31. How to advertise on facebook?

32. Create Your Audience

33. People with precise interest of food

34. Create Your Audience

35. Account and Campaign

36. Facebook launched FBX - the first-ever social media
real-time bidding (RTB) ad exchange - in June 2012 to let
advertisers buy Facebook ad inventory that retargets users based on their past
online browsing history.
It's impossible to target someone who is interested in living
with personalized
room furniture
ads unless they have likes relating to furniture brands.

37. Twitter revenue Model
Promoted/Sponsored tweets brings ads into the
stream of real-time conversation.
Promoted tweets appears at the top of twitter
search results.
These tweets will be real tweets, users can reply,
retweet them, or favourite them. But they will be clearly
labelled as advertising.
Now, what’s the difference b/w Google and twitter
sponsored result?
Promoted tweets must resonate with users*
Users should interact with the promoted tweets* and if
they are not interacting with it ( replying, favoriting,
retweeting), it will disappear.

39. Censorship???

40. helps in tracking conversations and measuring campaign results
via the web or mobile devices.
This lets you keep to a consistent social media schedule all week
long without
Social Oomph will auto-follow any new follower of yours on Twitter
if you like, which could save you a ton of time if you normally like to
reciprocate follows.

41. manage your Twitter feeds with powerful filters to focus on
what
matters.
real-time conversation on social media in order to predi
best times for publishing content to capture peak attention from
watch
target audiences.

42. Influencer Analysis and
Trend Analysis
Profile Bloggers,
Journalists and Celebrities, and are increasingly trying to reach
these influencers for endorsement and to drive word -ofmouth about the brand.
Global companies are targeting High
How to identify influencer?
Influencers can be identified with the help certain social media tools like IBM’s COSMOS,
Klout, Kred and PeerIndex.
These tools measures your influence based on your ability to produce action from your activity.
All of the above can scrape data from more social networks including Foursquare, YouTube
and Instagram.
More over these tools also determines the topics influencers are most influential for, based on
analysing the type of content you produce and others’ engagement.

43. The CMO’s Guide to the
Social Landscape
This tool is used to find the most appropriate social media site based on your marketing goals.
“Traffic to Your Site” will show you the interactions on the basis of social media
network.
If you are worried about “SEO” then Google+ stats can help you.

46. social media search engine and is a platform
that aggregates user generated content from across the universe into a single stream
of information.
Social Mention works as a

47. Google is an important tool for Social Media
Google trends aanalyzes a portion of Google
web searches to compute how many searches
have been done for the terms you enter,
relative to the total number of searches done
on Google over time
Hot Searches reflects what people are
searching for on Google today.

48. It gives you the ability to quickly track followers, tweets and following
metrics for any given Twitter account.
This social media tool is used to track the week-over-week progress of our social media
campaigns.

50. Artificial Intelligence Tools for
Social Media
• Salorix has developed a new tool called Amplify for tracking
conversations on social media sites.
ai-one inc. by Gnostech is used for monitoring data
and gather Intelligence from social media sites.
http://www.ai-one.com/tag/social-media/

51. Last Year, Something
Profound Happened…

52. The number of smartphones sold exceeded
number of PC’s.
Mobile advertising spending in the U.S. totaled $3
billion in the first half of 2013, up from $1.2 billion.
The mobile audience is roughly equal to Internet users on
laptops and desktops now.
Mobile CPM(cost per thousands) rates are the second-
lowest among all advertising mediums.

54. And this is naturally
changing everything…

55. Where are we in the mobile phone revolution?
We’re in early stage!
2013
5.6 B
2014 Expectations
1.75B +
1 B+

56. Who is going to win the
platform war?

57. As of now iOS and Android are ruling the market.
And actually Android vs iOS
is not as close as it looks.
Developers still prefer iOS!

58. Why?

59. 1: Android has fragmentation problems.
2: Apple generates the most mobile
commerce traffic
3: Apple dominates app revenue
4: Apple has wealthier users
5: Apple dominates the number of new
project starts

60. 2: And may be these developers are loosing
interest in Android.

61. So, who will rule the mobile platform?
Android?
Microsoft?
Some new script?
OR
Apple?
We don’t know yet!

62. What all people do on mobile?
They do almost everything today on mobile.

63. They consume content…
They look at ads.

65. People listen to music, use fb and twitter
more!
People do shop
from mobile too
30% of Gilt’s
revenue was
from mobile sales
- Says Boston Globe
38% of US consumers have used
smartphones to buy products or
services
- Says comScore

66. What happens when
we combine mobile,
fun, social and photos.

67. Apps are now going a $10 bn market, growing 100% every
year!
Angry Birds has 600 mn+ downloads
Instagram launched 2.2 years ago and presently it has more
than 90mn MAU
Insta
gram

68. An example of one of
the most viral app till
now!

69. Draw something launched in feb’12, a year ago
•In the first five weeks after its launching, the game was downloaded
20 million times.
•Fifty days after its release, it had been downloaded
50 million times
•Within 6 weeks after its launch total number of drawings touched
2 billion
Zynga bought it in
$200mn
• And finally

70. Global internet users will double over the next few years
and most of them will be on MOBILE!