Presentation on theme: "Advertising on Social Networking & Community Sites October 29, 2007."— Presentation transcript:
Advertising on Social Networking & Community Sites October 29, 2007
BACKGROUND TheSpark.com Sold to iTurf, Inc. (NASD: TURF) Leading site for humor, personality tests Yahoo! Best of the Web & Maxim Site of the Year Reached over 5MM monthly unique users SparkNotes Sold to Barnes & Noble, Inc. (NYSE: BKS) Leading site for online study guides Preferred by 90+% of HS, College students Accumulated over 10MM accounts eDonkey Leading P2P file-sharing application Accounted for 30% of all European internet traffic Peaked at over 30MM global users OkCupid.com One of the largest online dating sites in US One of only two major free online dating sites 3 differentiators: Free, Fun, & Effective Free Dating represents one of the largest online subscription business But other social networks are free Fun Offline dating is fun, but traditional online dating is sterile UGC makes OkCupid a destination site rather than a transactional site Effective Patent-pending matching algorithm estimates compatibility between users Generates deep, dynamic profiles
SOCIAL NETWORKS: ADVERTISING ASSETS Social Graph Real offline relationships Embedded information on friends preferences, membership in groups, etc. Communication Platform Members engage deeply in communications to & from others Commercial products/messages can be the subject of or participant in conversations Deep Profiles Some social networks collect unprecedented amounts of data Networks with strong online identities have more reliable data. Social networks have a reputation as a bad place to advertise because campaigns are run without leveraging their core assets.
OKCUPIDS ADVANTAGE: DEEP PROFILES 1,000,000 users have answered a question Mean: 233 questions answered Median: 99 questions answered
COLLECTING PERSONAL DATA Users will give OkCupid data they wouldnt give any other site, leading to extremely deep profiles We can insert commercial questions alongside the organic, user- generated questions Examples: What form of birth control do you use? What is your favorite type of movie? Do you like pets? What kind of car do you drive?. Even the most well-respected online brands generally cant credibly ask such granular lifestyle questions.
TARGETING FashionistasGym RatsShoppersDJs Not all media buyers are ready to target so granularly, but some are To simplify buying, we have grouped our users into 20 affinity groups.
SUMMARY Social networks are evolving into platforms for the internet, just as Windows is a platform for personal computers Social graphs, communications, and data must be leveraged to make advertising on social networks effective Facebook leads among social networks; OkCupid among dating sites Social networks / community sites are fulfilling the promise of portals as users homes on the web.
ONLINE DATING LANDSCAPE Daily Logins: 28% growth in last 6 weeks. Messages Sent: 80% growth in last 4 months While Match.com (1.2 MM subs) & Jdate (72k subs), & eHarmony (estimated 750,000 subs) SHRINK despite hundreds of millions in advertising, OkCupid (500k active users) grows without any marketing spend.