Comments on: What is a social network worth? Six things to thing about http://azeemazhar.com/?p=293 thoughts on [ economics | finance | technology ] Mon, 06 Sep 2010 23:58:02 +0000 hourly 1 http://wordpress.org/?v=3.0 By: bpeele http://azeemazhar.com/?p=293&cpage=1#comment-365 bpeele Mon, 08 Jun 2009 22:33:49 +0000 http://azeemazhar.com/?p=293#comment-365 I also might add sell-thru, as certain socnets are better at selling (communicating the usp of their respective socnet) to advertisers. I'd add a premium for those who sell north of 30% of their advertising directly. I also might add sell-thru, as certain socnets are better at selling (communicating the usp of their respective socnet) to advertisers. I'd add a premium for those who sell north of 30% of their advertising directly.

]]> By: bpeele http://azeemazhar.com/?p=293&cpage=1#comment-364 bpeele Mon, 08 Jun 2009 22:31:43 +0000 http://azeemazhar.com/?p=293#comment-364 Azeem - very good insight here. I'd add a bullet 4.5 on engagement, as time on site, visits/mo, update/feed/stream relevancy, skins adopted, videos copied, bands/celebs fanned, apps added etc. are all ways to justify higher CPMs on engagement marketing deals.<br><br>Any idea who would run these numbers again given all the added considerations you've listed? TC? An I-bank?<br>bp Azeem – very good insight here. I'd add a bullet 4.5 on engagement, as time on site, visits/mo, update/feed/stream relevancy, skins adopted, videos copied, bands/celebs fanned, apps added etc. are all ways to justify higher CPMs on engagement marketing deals.

Any idea who would run these numbers again given all the added considerations you've listed? TC? An I-bank?
bp

]]> By: bpeele http://azeemazhar.com/?p=293&cpage=1#comment-250 bpeele Mon, 08 Jun 2009 15:33:49 +0000 http://azeemazhar.com/?p=293#comment-250 I also might add sell-thru, as certain socnets are better at selling (communicating the usp of their respective socnet) to advertisers. I'd add a premium for those who sell north of 30% of their advertising directly. I also might add sell-thru, as certain socnets are better at selling (communicating the usp of their respective socnet) to advertisers. I'd add a premium for those who sell north of 30% of their advertising directly.

]]> By: bpeele http://azeemazhar.com/?p=293&cpage=1#comment-249 bpeele Mon, 08 Jun 2009 15:31:43 +0000 http://azeemazhar.com/?p=293#comment-249 Azeem - very good insight here. I'd add a bullet 4.5 on engagement, as time on site, visits/mo, update/feed/stream relevancy, skins adopted, videos copied, bands/celebs fanned, apps added etc. are all ways to justify higher CPMs on engagement marketing deals.<br><br>Any idea who would run these numbers again given all the added considerations you've listed? TC? An I-bank?<br>bp Azeem – very good insight here. I'd add a bullet 4.5 on engagement, as time on site, visits/mo, update/feed/stream relevancy, skins adopted, videos copied, bands/celebs fanned, apps added etc. are all ways to justify higher CPMs on engagement marketing deals.

Any idea who would run these numbers again given all the added considerations you've listed? TC? An I-bank?
bp

]]> By: azeemazhar http://azeemazhar.com/?p=293&cpage=1#comment-244 azeemazhar Fri, 05 Jun 2009 12:24:49 +0000 http://azeemazhar.com/?p=293#comment-244 Hey Nic,<br>As always you are right. Market leadership does matter, and it is something different to reach premium. <br><br>In traditional markets, the non-leadrrship discount would often mean that there were bargains to be had by snapping up the number 2, 3 or 4 in a market. I would question what that discount needs to be in a Metcalfe's law business.<br>Azeem Hey Nic,
As always you are right. Market leadership does matter, and it is something different to reach premium.

In traditional markets, the non-leadrrship discount would often mean that there were bargains to be had by snapping up the number 2, 3 or 4 in a market. I would question what that discount needs to be in a Metcalfe's law business.
Azeem

]]> By: brisbourne http://azeemazhar.com/?p=293&cpage=1#comment-243 brisbourne Fri, 05 Jun 2009 11:51:34 +0000 http://azeemazhar.com/?p=293#comment-243 Hi Azeem - I would add market leadership to this, as the leader clearly attracts a premium. Was Myspace, now Facebook with Twitter investors starting to price in a small chance that they might be next.<br><br>Additionally, potential for other revenue streams is important. LinkedIn's premium service is why they got their $1bn valuation.<br><br>Like you I welcomed this analysis, and it provides a helpful ranking of socnets, but for all but the largest ones I think the absolute numbers are way overstated - and that is because they are all calculated down from valuations commanded by market leaders. Hi Azeem – I would add market leadership to this, as the leader clearly attracts a premium. Was Myspace, now Facebook with Twitter investors starting to price in a small chance that they might be next.

Additionally, potential for other revenue streams is important. LinkedIn's premium service is why they got their $1bn valuation.

Like you I welcomed this analysis, and it provides a helpful ranking of socnets, but for all but the largest ones I think the absolute numbers are way overstated – and that is because they are all calculated down from valuations commanded by market leaders.

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