Comments on: And the New Revenue Model Is… http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/ A member of the Gartner Blog Network Wed, 21 Sep 2011 15:29:47 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Engagement and The Click Fallacy http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/comment-page-1/#comment-3368 Engagement and The Click Fallacy Tue, 16 Dec 2008 17:34:09 +0000 http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/#comment-3368 [...] but I don’t wish to go there again. Instead, let’s go back to the conversation about advertising on Social Networks, which the New York Times recently weighed in [...] [...] but I don’t wish to go there again. Instead, let’s go back to the conversation about advertising on Social Networks, which the New York Times recently weighed in [...]

]]> By: Martin Edic (Techrigy) http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/comment-page-1/#comment-427 Martin Edic (Techrigy) Mon, 24 Nov 2008 22:33:03 +0000 http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/#comment-427 Kari hits the nail. In social media, which is really a communications medium not a content/news medium, advertising is dead on arrival. The agencies and the major consumer brands have a problem with that because they can't imagine scaling an engagement model. However I'm not theorizing- broadcast won't work in social media. People don't participate to earn money, they do it to communicate (though you certainly can earn money by demonstrating expertise through adding value). If they are not doing it specifically to monetize then they have no incentive to build a place for ads. The more important and positive thing is that engagement can scale because exposure is exponential. Create a valuable contribution and your message will disseminate. Blast a self-serving pitch out and the negative response will also spread... Kari hits the nail. In social media, which is really a communications medium not a content/news medium, advertising is dead on arrival. The agencies and the major consumer brands have a problem with that because they can’t imagine scaling an engagement model. However I’m not theorizing- broadcast won’t work in social media. People don’t participate to earn money, they do it to communicate (though you certainly can earn money by demonstrating expertise through adding value). If they are not doing it specifically to monetize then they have no incentive to build a place for ads.
The more important and positive thing is that engagement can scale because exposure is exponential. Create a valuable contribution and your message will disseminate. Blast a self-serving pitch out and the negative response will also spread…

]]> By: DevlinD http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/comment-page-1/#comment-163 DevlinD Tue, 18 Nov 2008 21:33:21 +0000 http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/#comment-163 #6 is quite an interesting model. As long as you could tailor it to a company's needs it could hold promise. The one thing I don't see anyone talk about though is that with such great targeting how does advertising on social networks fail? I think its because the context is never right. People are rarely looking to buy stuff while they are interacting with their friends on social networks. I have always thought that Facebook would be in a great position to take that targeting and roll it into an ad network like AdSense, or what we have more recently seen LinkedIn do. Doing so could also allow them to break into the evolving influence marketing segment by providing a social context to ads on third party sites where the user is more intent on making purchases. I'm really not sure what is stopping them from doing this. It could honestly be an ad model that could supplant Google. #6 is quite an interesting model. As long as you could tailor it to a company’s needs it could hold promise.

The one thing I don’t see anyone talk about though is that with such great targeting how does advertising on social networks fail? I think its because the context is never right. People are rarely looking to buy stuff while they are interacting with their friends on social networks. I have always thought that Facebook would be in a great position to take that targeting and roll it into an ad network like AdSense, or what we have more recently seen LinkedIn do. Doing so could also allow them to break into the evolving influence marketing segment by providing a social context to ads on third party sites where the user is more intent on making purchases.

I’m really not sure what is stopping them from doing this. It could honestly be an ad model that could supplant Google.

]]> By: Karl Long http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/comment-page-1/#comment-162 Karl Long Tue, 18 Nov 2008 21:19:34 +0000 http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/#comment-162 First off, glad to see you exploring this stuff Andrew, subscribed. Any conversation about advertising in the social media space has to face the fact that this is not mass market broadcast so almost every theory around advertising developed over the last 50 years is probably not going to fit (as you rightly point out). Social Media disrupts all communication channels, advertising included, so I don't think we're going to make tremendous progress until companies actually start to restructure how and where they connect, inspire and empower consumers. For me the question comes down to how do we create value for the customer and for the company through our connections in social media, as you say, there is a need for real strategy here, not tactics. First off, glad to see you exploring this stuff Andrew, subscribed.

Any conversation about advertising in the social media space has to face the fact that this is not mass market broadcast so almost every theory around advertising developed over the last 50 years is probably not going to fit (as you rightly point out). Social Media disrupts all communication channels, advertising included, so I don’t think we’re going to make tremendous progress until companies actually start to restructure how and where they connect, inspire and empower consumers. For me the question comes down to how do we create value for the customer and for the company through our connections in social media, as you say, there is a need for real strategy here, not tactics.

]]> By: Andrew Frank http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/comment-page-1/#comment-158 Andrew Frank Tue, 18 Nov 2008 19:34:31 +0000 http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/#comment-158 Blake, I think this points out how large enterprises are positioned somewhat orthogonally to many large social networks as they realize that much of what they need from social networks - marketing intelligence, consumer engagement, word-of-mouth campaigns, service widgets, PR or CSR interventions - none of it seems to require writing a check to the domain owner. So, yes, organizations need to develop comprehensive social media strategies - and social networks need to strategize how to be a bigger part of that. /acf Blake,

I think this points out how large enterprises are positioned somewhat orthogonally to many large social networks as they realize that much of what they need from social networks – marketing intelligence, consumer engagement, word-of-mouth campaigns, service widgets, PR or CSR interventions – none of it seems to require writing a check to the domain owner.

So, yes, organizations need to develop comprehensive social media strategies – and social networks need to strategize how to be a bigger part of that.

/acf

]]> By: Blake Cahill http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/comment-page-1/#comment-156 Blake Cahill Tue, 18 Nov 2008 19:10:35 +0000 http://blogs.gartner.com/andrew_frank/2008/11/18/and-the-new-revenue-model-is/#comment-156 Andrew - I think your post and list is interesting - what we find is that many organizations are at differing levels of understanding, investment, and transformation related to consumer conversations. It can vary significantly as to who is the "social" thought leader or champion at large enterprises. Sometimes it's PR/Comms, or Customer Service, Marketers or Researchers - still most rare is the organization that is taking an enterprise wide view and holistically transforming their operations, client service, and marketing outreach strategies. Each discipline has it's own use case, needs and outputs but organizations should be developing a more comprehensive strategy/approach and learning and best practices. Blake Andrew – I think your post and list is interesting – what we find is that many organizations are at differing levels of understanding, investment, and transformation related to consumer conversations. It can vary significantly as to who is the “social” thought leader or champion at large enterprises. Sometimes it’s PR/Comms, or Customer Service, Marketers or Researchers – still most rare is the organization that is taking an enterprise wide view and holistically transforming their operations, client service, and marketing outreach strategies. Each discipline has it’s own use case, needs and outputs but organizations should be developing a more comprehensive strategy/approach and learning and best practices.

Blake

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