How can Social Media Marketing make profits?

Welcome to Hanhaocheng's blog. I expect to share something interesting with you in my blog.
 

Social Networking is becoming more and more popular, people contact with it everyday.So I'd like to write something about social networking in my blog. 

    

In my first blog, I want to talk about a topic "How can Social Media Marketing make profits?"  

   

I'd like to enumerate some of the facts: Social media and networking websites in the top 40 include Facebook.com, YouTube.com, Twitter.com, Wikipedia.com, and LINKEDIN.COM. Amazon.com and Ebay.com are the only non-search engine or non-social media and networking websites in the top 40 worldwide. Facebook currently has in excess of 350 million active users on global basis. This is over a 40% growth in less than 6 months. With amazing influence, Social media has changed the way to do the marketing and online marketing. In traditional marketing, we can sell real goods to customers, such as TV, computer and so on. However, we need something special to take place of real goods in the newest market. In other words, how can SMM(Social Media Marketing) make profits?

   

First of all, advertisement play an important role in SMM. Because social networking attracts a large numbers of users, advertising in social networking is more effective than in real world. For example, approximately 98% of the revenue of Facebook comes from advertising in 2009.           

    

             People do not only watch advertisement themselves, but they also share the interesting or useful advertisement with their friends by clicking "Like" and "Share". Then the advertisement spread quickly.

Secondly, virtual goods are sold by social media and networking websites. Users will buy these virtual goods when they need. For instance, users send virtual gifts to their friends on special festival. It is a good way for them to greet each other. 

   

Thirdly, social media websites give their users some unique rights. With these  rights, they can enjoy more                      

 functions  than general users. The websites will ask for money when the users register. I think this method benefits both two sides.                                         

   

Finally, in recent years, more and more online games have been put on social networking websites. It is a new way for social media marketing to make profits. 

   

In conclusion, because of the importance of social networking, social media networking draw lots of attention of people who want to make money. There is no doubt that more means will be used to make profits in this new market.