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TopBackground
The increased importance of technology platforms for social interactions has raised the interest of product marketers who seek to explore these as new advertising/promotion media (Katona, Zubcsek, & Sarvary, 2010). Indeed, social networks’ revenue models are primarily based on advertising, although, so far, the use of (mostly) banner-type advertising has produced disappointing results1. Increasingly, marketers believe that the efficient way of using social networks for marketing relies on harnessing word of mouth, by analyzing the network of members’ connections (Katona et al., 2010). For example, Google has recently filed a patent for an algorithm that identifies so-called “influencers” on social networks (Katona et al., 2010).
Key Terms in this Chapter
Podcasting: Preparation and distribution of audio files using RSS (an XML-based format) to the computers of subscribed users.
Adoption Spectrum: A continuum that classifies the users of an innovation based on their level of readiness to accept the new ideas.
Blogging: An act of posting a writer’s or a group of writers’ own experiences, observations, and opinions on a blog (a Web log or online journal). It often contains images and links to other websites.
Diffusion of Innovations: A theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures.
Social Networking Site (SNS): An online platform that enables users to create public profiles within that Web site and form relationships with other users of the same Web site who access their profile.
E-Commerce: Any commercial transaction (e.g., buying and selling goods) conducted in an electronic network, primarily the Internet.
Innovation: A new idea, device or process, generally offering better solutions that meet new requirements or existing market needs.