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Webmarketing

FLICKR

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Flickr

• We want to help people make their photos available to the people who matter to them.

• We want to enable new ways of organizing photos and video.

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Users Create Value

• Web 2.0– Takes a different approach on how business,

customers and partners interact.

• 1980, Alvin Toffler’s best seller predicted the :

Prosumer: Mix between DIY and ConsumerWhere the USER creates VALUE

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What is Flickr ?• Flickr is

– an image and video hosting website– web services suite– and online community.

• The service is widely used by bloggers to host images that they embed in blogs and social media.

• As of October 2009, it claims to host more than 4 billion images.

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Tell a story with your photos1. Tell a story with your photos and allow

whoever you want to comment.

2. Add notes to explain or comment right on the photo.

3. Favorite the photos you like best to easily find them later, and see who has favorited yours.

4. Add people to your photos for your reference, and so they can see what you've posted.

5. Add tags to categorize your photos and to help others find them in searches.

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Share your photos with your friends and family

• It's easy to find people you know on Flickr– Search by name or email– Import your contacts from Yahoo! Mail, Gmail, or Hotmail– Invite your friends

• Decide who sees your photos

• Expand your options with a Guest Pass

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Quick Note:

• Flickr actually CHANGED their business model– From online gaming to photo base

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Freemium

• Give your Service away for free• Even Ads are optional• Acquire lots of customers

– Network– Referral– Search

• Offer a priced, enhanced version to customers

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Freemium

• Basic Web services, for free

• Charging a premium for advanced or special features.

• The word "freemium" is created by combining the two aspects of the business model: "free" and "premium".

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Start Up Cycle

1. Have a great idea.

2. Raise money to bring it to market– ideally free to reach the largest possible market.

3. If it proves popular, raise more money to scale it up.

4. Repeat until you're bought by a bigger company.

Now steps 2 through 4 are no longer available.

So Web startups are having to do the unthinkable: come up with a business model that brings in real money while

they're still young.

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Some Freemium Cases

• Adobe• Macromedia• Skype• Flickr• Pandora

Most Freemium companies see a 2 - 5 % Convertion Rate

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Pandora

•  Launched in August 2005 – Users got 10 hours of free online radio at signup, after which they

were asked to pay $36 per year. – “In the first couple weeks we had 100,000 people come through

and the vast majority listened to every last minute of their free ten hours”

• Pandora now has 20 million uniques – $50 million in revenue last year. – Subscription rates had dropped <1 % of users. – 1 % of a large number is still a large number

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Flickr

• Accumulating Positive Network Effects

Flickr

Digital Photo

Tech Enthusiast

SofisticatedFilter, Ranks

BrowsingPopularity

Editors / Tags

BloggersUsing pics

TRAFFIC

click

tag

keyword

browse

comment

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Growth

• Reaching and Tagging• Each user creates value ! • The core value

– Dont build applications, build context for interaction

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2005 Fast Company Winner

Created the largest and best organized online photo library.

1.8 million images

81% of them are public

85% have human-added metadata

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Open Up Digital Content to Global User Interaction

• Boom of the Digital Picture

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Better Search through User-Generated Information

• Underlined Book• Tags• Footnotes• Annotations• METADATA

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Groups

• Flickr was a leader in creating photo image metadata to group

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Catalyze and Amplify Social Network Effect

• Flickr owns a dynamic algorithmic means for rating, sorting and finding photographs.

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DIY Syndication

• Flickr was the first-mover in providing self service tools for web 2.0.

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How sharing can be Profitable

• What are the revenue streams ? – Single Stream– Multiple Stream– Interdependent Stream– Loss Leader

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Long Tail

• Democratize the Tools of Production• Democratize the Tools of Distribution• Connect Supply and Demand