Social Media Business Model Analysis - Case Tencent, Facebook, and Myspace

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l Social Media Business Model Analysis - Case Tencent, Facebook, and Myspace Logistics Master 's thesis Xiaoyan Hu 2011 Department of Information and Service Economy Aalto University School of Economics ABSTRACT The term of social media is becoming increasingly popular presently, the amount of social media users is growing dramatically, and the monetization of social media has been discussed in publications but not in details. Nowadays, the most frequently used approach to make money for social media is online advertising. However, the successful company like Tencent proves other potentials of monetization. Because the business model is critical to make profit for a company, a company’s financial performance could be better…show more content…
5 1.2 Objectives and Research problems ........................................................................... 6 1.3 Thesis Structure ............................................................................................................ 7 1.4 Study Methods ............................................................................................................... 8 2. Literature Review of Social Media .................................................................................... 9 2.1 Definitions of Social Media .......................................................................................... 9 2.2 Social Media and Web 2.0 ......................................................................................... 10 2.3 Classification of Social Media.................................................................................... 13 2.4 Use of Social Media .................................................................................................... 19 2.5 Networks Effects.......................................................................................................... 20 2.6 Social Media as a Marketing Tool ............................................................................ 21 2.7 Social media issues and challenges ........................................................................ 24 2.8 Monetizing

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