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Innovation

Innovation

Introduction

The future of marketing is a two-way street? not a one-way message. Marketers must look to the post-modern consumer's need for online oxygen to find new ways to find and communicate with customers? rather than at them.

Online social networks are one of the hottest investment sectors. Valuations defy conventional investment analysis. These networks can assemble communities of millions of users in the first few months and some have grown to communities of tens of millions of people. (Allen 2004:15-20)

Online social networks provide internet applications to facilitate social interaction between people. An online industry network provides internet applications to facilitate collaboration? information distribution and markets between participants within an industry. (Bush 2005:85-95)

The fundamental defect in online social networks is that they do not manage valuable information. The consumer is not willing to pay to see information? and the owners of information are not willing to distribute it. The default revenue opportunity is third party advertising. These networks typically have an average revenue per user of less than two dollars. Online social networks should target opportunities which manage valuable information. Many providers of generic applications like email charge US$30 per user per annum. (Allen 2004:15-20)

Discussion

An online industry network does more than just provide generic applications like email and calendar for indiscriminate users. It provides specific applications to what industry participants do every day. It moves the people? functions and market online. The more an industry consists of information? the greater the potential of moving people and performing market functions with specific applications. The applications include profiles? matching buyers and sellers of services and products? facilitating collaboration? information distribution and classifieds. Different industries will have different applications. An online industry network can charge a premium over an application service provider. (Sheizaf 2002:196-207)

The types? characteristics and opportunities for online networks are listed below: (Allen 2004:15-20)

An Online social network provides internet applications to facilitate social interaction between people. The Average Revenue Per User (ARPU) per annum of $0-25.

An Online industry network provides internet applications to facilitate collaboration? information distribution and markets between participants within an industry. A focus on industry increases ARPU to more than USD1?000+ per annum. (Sheizaf 2002:196-207)

domain name owners could move beyond PPC revenue and apply an online network to increase ARPU. The time and cost to deploy could be significantly reduced by participating in an open source software “solution” project.

My Personal Experience

AutoCreator.Org was developed to capitalize on the recognized Internet phenomenon of social networking and viral marketing in the auto industry. The portal is a network of automotive advertising agencies? auto industry vendors and auto dealers who turn to the site to share best practices and to solve common problems in a shrinking auto industry.

The affiliated automotive advertising agencies? auto dealer/vendor clients of Auto Creator? and site visitors to AutoCreator.Org asked Philip to share his insights on the importance of viral marketing and social media in today's troubled auto industry. The Internet is being used by consumers to help them in their buying decisions. Auto dealers are following them onto ...