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

34799 Words140 Pages
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…
51 5.2.1 Tencent business model ..................................................................................... 51 2

5.2.1 Facebook business model .................................................................................. 61 5.2.2 Myspace business model .................................................................................... 70 5.2.3 Business models comparison............................................................................. 76 5.3 Performance Measurement ....................................................................................... 82 5.3.1 User activity and engagement metric ................................................................ 82 5.3.2 User geo-socio-demographic metric ................................................................. 83 5.3.3 Social media content metric ............................................................................... 85 5.3.4 Business metric .................................................................................................... 88 5.4 Business Models Innovation ...................................................................................... 90 5.4.1 Potential models assessment............................................................................. 90 5.4.2 Identification of risks
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