We’re often asked to define social media either directly (what is social media?) or indirectly (we need a social media strategy), so I thought I’d provide a list of the key platforms that make up what we call “social media”:
- Article directories that publish original user generated content (UGC).
- Blogs that feature original content and allow comment from users.
- Blog aggregators like Technorati that allow members to bookmark, tag, syndicate and recommend blog content to other people.
- File sharing sites with community and comment functions like YouTube and Flickr.
- Forums that allow users to post within a special interest community such as Crackberry.com for Blackberry users.
- Microblogging sites like Twitter and all associated sites like Tweetdeck that carry and syndicate content to their users.
- Review sites for products and services (like Travelocity) that carry user generated content (UGC) and reviews.
- Social bookmarking sites like Delicious and Digg that allow tagging and tag sharing so that other people can explore the same tags.
- Social networking sites like Facebook and LinkedIn that allow communities to manifest themselves online.
- Wikis - online encyclopedias that can be edited by anyone - like Wikipedia
It’s worth noting that there are two critical components in social media, the 2 C’s: Content and Community. These are the two sides of the social media coin.
On the one side, content lies at the very heart of social media. Content populates all the components above, all of which would cease to exist without content. In the case of social media, content is often user generated (User Generated Content or UGC) as opposed to being generated by a professional publishing house. If you are thinking social media in any way, you must be thinking content; without content there is no social media.
Community is the other aspect of social media. Communities gather around people of similar types (alumni, workplace, school, product users etc) or common interests (stamp collecting, trainspotting, FX trading) in the same way that “birds of a feather flock together” in many other aspects of social sciences. Communities are also important because they create a demand for content as members seek opinions or seek to make their own views known. Without communities there would be less of the subtle “friction” that causes many types of content to be generated and consumed.








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Should twitter charge?
Twitter is talk of the town in UK marketing circles this week. But the discussion isn’t about the fun of using twitter or the reasons why people do or don’t use it, or when they use it, or how often or who with. No, it’s about whether or not twitter should charge brands for using its services.
You can’t blame twitter for trying, they have bills to pay just like the rest of us - and like the rest of social media. Despite their incredible growth, social media brands are caught in digital Catch-22;  they can get right into the highly prized personal space of individual consumers. But unfortunately, these high levels of personal involvement come at a price; when consumers are facebook-ing, twitter-ing, myspace-ing or bebo-ing, they are so highly involved in generating their own content that they are not very interested in advertise-ing. The display model is virtually impossible to crack in these environments - especially on a click/sales performance basis.
So if the social media channels can’t make display pay what other areas of potential revenue can they look at? There are two obvious alternatives. Data and subscriptions.
Some big and successful businesses have been built selling customer data and using data to generate customer sales leads. Social media sites can gather all sorts of data but there’s a hitch here. Â Both formal privacy regulations and “online morals” (e.g. Facebook’s Beacon rebellion) make monetizing social media member data a difficult area.
The other route is subscription revenue, but asking for a subscription fee risks losing members and slowing growth. That’s a risk social media can’t take. I’d bet that every venture capital presentation they make starts with a great looking exponential growth chart because, for the time being at least, growth is keeping the financiers happy.
So without revenue from traditional display, data sales or subscription revenues, how can social media companies make a living? Brands I’m afraid are an obvious target for two reasons. First, they’ve got money and second, charging brands does not affect the growth of the user base.
All the pioneers of social media have got to do now is find a way of creating a trade between their social assets (us) and brands’ desire for close engagement. Social media stakeholders are going to be very focussed on answering this question because if they can’t, some aspects of social media will quickly move from being the talk of the town to being a thing of the past.