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Web 2.0 and Social Networking

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Innovation Reports - 15/08/2008 Web 2.0 and Social Networking

New applications, new business models ? new business models?

This report provides analysis of the recent outstanding phenomena on the web, namely video sharing and social networks whose community aspects are spreading to most corners of the Internet, well beyond the confines of Web 2.0. It provides details on current usage levels, key Web 1.0 and 2.0 player strategies, pioneer initiatives to monetise the community and the development of a new paradigm, based on the social graph and interoperability tools, which will likely have an impact on Internet services across the board.


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Contents

1. Consumption 2.0



• Usage: penetration levels, breakdown by age categories, time spent, page views, etc.
• Geographical disparities: leaders by geographic zone
• Web 2.0 spreading across the Net


 


2. Key players



2.1 Key Web 2.0 players
• Initiatives from Web 1.0 leaders
Profiles: Google, Yahoo!, AOL and Microsoft
• The online community giants
Case study: MySpace, Facebook
• The new Web 2.0 wave: micro-blogging, social network aggregation, social music
Case study: Twitter, Friendfeed, Imeem, Ning
Other key social networks
Profiles: Cyworld, Mixi, Bebo, Dada.net, Hi5 Orkut, Netlog, Badoo, Flickr, Photobucket, Del.icio.us, StumbleUpon, Wikipedia, Digg, Last.fm



2.2. Video sharing: a central Web 2.0 component
• Usage: penetration level, time spent
• UGC site market share: YouTube still on top
• Leading local players: DailyMotion, MyVideo


 


3. Business models



3.1. Advertising
• Social network advertising market:
- size of the market
- relative weight in the advertising equation
- revenue generated by the top players
• Ad formats:
- traditional formats and CPM
- partnerships with major online ad services
- widgets and new formats
• Targeting key to the success of Web 2.0 advertising:
- HyperTargeting
- Beacon
- Advanced datamining
• Organic Web 2.0 advertising
- rerouting from the social network
Case study: Facebook applications (Slide, RockYou Ilike…)



3.2. Other sources of income
• Sale of generic technology
- initiatives from the leaders
- the new start-ups
• Sale of premium services:
- convenience
- enhanced
- mobile
• e-commerce:
- commissions
- affiliation
- direct sales
- virtual goods
Case study: Cyworld



3.3. Conclusion
• Who will survive Web 2.0?
• Telcos’ and media giants’ Web 2.0 acquisitions


 


4. Data portability and social graphs



4.1 APIs and key tools
• How APIs work
• Key tools: oAuth, micro-formats



4.2 Platforms
• Facebook’s F8 initiative
• Similar approaches: MySpace, etc…



4.3 Data and applications interoperability and portability
• Issues and limitations of existing solutions:
- new services
- respecting user privacy
• Major systems:
- OpenID
- Data availability
- Data Portability
- Google Friend Connect
- Facebook Connect
• OpenSocial: going head to head with Facebook
• Top internet player strategies



4.4 Advanced social graphs
• Principles and challenges
• Pioneer forays into the social graph: Dopplr, Corkd

Key issues
• Leading Web 2.0 consumption trends

• Web 2.0 player strategies

• Role being played by the Web 1.0 heavyweights

• Are there any viable Web 2.0 business models?

• Is advertising the sole available source of income?

• Will social networks become interoperable?

• Is the social graph the future of the internet?


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