The Influenced Economy
Sourced from Adweek:
“Social media specialist Vitrue, which aids brands in building their customer bases on social networks, tried to put a media value on such communities.
The firm has determined that, on average, a fan base of 1 million translates into at least $3.6 million in equivalent media over a year.”
This translates to the fact that the more followers and/or fans that you have on social networking sites, the more leverage or value one possesses. Which in turn suggests that advertisers should pay more for an ad on a profile page with 1 million followers, than a profile page that has 5,000 followers – creating an advertising economy of scale based on influence. Seems like we are in high school all over again, but this “Influenced Economy” may be a viable way for social media companies to actually start making money, and have a real business model.