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CASE MEMO

DEMAND MEDIA

Group 5: Iander Arriga, Monika Ulla, Carlos Revilla, Aet Viira, Peeter Pähkel



Recommendation:

“Facebook, the meeting point for business”

"Demand Media" should be updated in Internet search engines, because nowadays the trend for surfing social networks has increased dramatically. It would be desirable that company reached a compromise with somesocial networks such as Facebook to gain more market share.
Around development and evolution followed by the Facebook social network, we can say today is considered as a meeting point for business, personal and professional business service and a social networking as the new Virtual World Trade Center.

Problem definition:
As we have seen in the case, the company was born when RosenblattDemand Media broke away from MySpace with the certainty that social networks were doing things wrong. Large sites such as MySpace or Facebook, with millions of users related to each other, but it is very difficult to find specific information there about an specific issue that interests them. Rosenblatt believed that these social networks, despite having millions of users could not get linked to eachother, that is, although the company has many users on these social networks, if a user has questions about a specific topic (gardening, writing checks , health foods ...) could not directly contact people of their interest, so he thought it was better to develop many small sites with specific themes and sell them Google ads, then, potentially, have a more successful business. So, if thousands ofpeople googling "I cannot write a check" or "the best way to put the Christmas tree lights," Demand Media says just how to do it. This ensures the first places in the ranking of Google searches in the future issue and with this first place you get clicks and, of course, money that generates the presence of advertisers.
Demand Media has been years ago and also today a company that is succeedingin the network with a simple model but also very efficient: give people what people exactly asks about some topic. Demand Media is now the largest online content producer in the world, with 170 thousand videos posted, is the leading provider of YouTube, and their ultimate goal is to reach one million postings a month, something like 1400 notes and videos for hours.
Demand Media owns a lot ofsites who are aimed at a niche market with high demand like “ehow.com” “livestrong.com”…
Assumptions:

While Demand Media model had worked well during its first five years, the emergence of social networks and mobile applications represent both a distinct change in audience behavior and a new opportunity for the company.
Social Networks
What is the first thing a young person just waking up? Lookat Facebook. How do you entertain themselves employees in their down time at work? In social networks. With all the studies pointing to a continued and accelerated growth in the number of users of these new media, the conclusion is obvious: social media are everywhere.
Facebook is a social network that has a greater number of active users of more than 200 million people around the world.
In ouropinion, however, social networks have a large impact on society and provide benefits to the advertising industry, allowing them to publish a product or service with a low investment. Today the future of marketing goes by the incorporation of new technologies and means for a greater segmentation and instant feedback.
From our point of view, we think that companies can benefit from socialnetworks getting more users on their website and they offer the possibility for each brand to be in the same place as their target audience. These benefits could include:
- Achieving greater public segmentation, allowing knowledge from the age, residence, tastes, and so on. relations to the direct relationship to each participant.
- To enable users to comment on the ads you see. For example,...
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