NDTV Profit Panel Discussion on the Business on Social Networking
I recently joined a NDTV Profit panel discussion on the business on social networking with NDTV Profit’s Pankaj Pachauri, Vizisense COO Prashant Mehta, Faking News founder Rahul Roshan, and Perfect Relations MD Dilip Cherian.
Here are a few comments I made during the panel discussion –
1. Social networks make money by advertising, subscriptions and micro-transactions (virtual goods). In the coming years, virtual goods are likely to become the most important source of revenue for social networks.
2. People can make money from social networks by building applications using their APIs, helping marketers create social media programs and leveraging your reputation as a thought leader to create a career as a writer/ speaker.
3. The convergence of the three screens — TV, web and mobile — is the next biggest trend for brands and already, we are seeing that social networks are acting like a virtual water cooler during large events that lead to spurts in TV viewership.
4. How brands are moving beyond simple marketing applications for social media and creating social CRM programs to engage customers throughout the customer lifecycle.
5. Across the world, social networks like Twitter and Facebook have a discontinuous increase in usage because (1) they become hubs of discussion during large national events like natural disasters and elections (2) celebrities start using these services and bring along their fans, and (3) TV channels start using these services to engage with their audiences.
6. Social networks are increasingly creating recommendation engines that create personalized experiences for us by using our friends as filters for relevant content.
7. Most people on social networks use them to connect with friends and family by sharing pictures of cute cats or growing crops on Farmville. Very few people use it to benefit themselves by making money or benefit the society by supporting a cause. So, the primary value on social networks is still entertainment, not commerce or causes.