Online Social Networking Software

What will be the best ways to monetise the rapidly growing Consumer Generated Media? As more and more users fragment of the big sites into social media its a question that really needs some answers if social media is going to pay its bills.

With the U.K. and European market for user-generated video and Consumer Generated Media in general set to rocket over the next four years, the important question for publishers and advertisers remains: how best to monetise the rapid growth and demand in UGC whilst ensuring a brand-safe environment? Once again, the U.K. and European market looks set to follow the US model where the question of providing moderated avenues to reach rapidly growing UGC audiences resulted in the launch and expansion of certain digital specialists.

Indeed, with the European market for user generated video content predicted to grow more rapidly than the U.S in the coming four years -- rising from $200m (£108m) at present to $2.46bn (£1.32bn) by 2012 (according to ABI Research), the necessity for publishers to offer advertisers the safeguard of a moderated, brand-safe method of harnessing this growth is clear.

Magnified by the current economic concerns, the notion of ignoring this potentially business critical revenue stream whilst your competitors make hay is inconceivable. This demand for social media (and particularly user-generated video content) has exploded in both consumer and enterprise markets, both of which are being driven by consumers' desire to publicly share their voices.

Worldwide broadband penetration continues to grow -- the UK, France, Germany and Scandinavia in particular -- commensurate with investment in broadband networks to support this increase in video consumption.

This year alone spending on social networks in the U.K. is expected to rise 77 per cent to $225 (£115m) and by 2012, U.K. marketers are projected to spend $533m (£285m), a 148 per cent increase over 2008.

The importance of this market, in comparison to the traditional advertising market which is undertaking some serious naval gazing at present is clear. As budgets tighten due to global financial uncertainties, brand marketers are looking to maximise the ROI potential of social media ahead of other digital media channels.

Rich media -- such as user generated video content that is uploaded to and viewed from social media communities is going to be a major global trend for brands to adopt and commercialise, and for advertisers to take advantage of in terms of reaching new audiences.

Major European enterprise publishers will look to harness this potentially, highly lucrative revenue opportunity and we anticipate before too long, every major brand will have created and will be managing its own digital community and every consumer will be able to share their voice. However, the potential of this demand will only be realised if advertisers can be assured that their brand is safe within the user generated content market -- and environment that up until has been regarded as potential Russian roulette.

Indeed, for any user generated content to be of significant value to the advertising community -- and to enable the advertising community to harness the rapid growth in user generated content consumption forecast, it is absolutely critical that the environment is moderated and therefore, brand safe.

Moving forward, the owners/publishers of social media and social networking sites should be compelled to take responsibility for the content that is displayed on their sites, especially if effective monetisation is a business aim.

A lack of moderation may be acceptable amongst the 'not for profit' sector but as soon as sites look to monetise their inventory through advertising, the question of moral and corporate responsibility (ensuring that the environments into which they are placing their advertiser’s brands are fit for purpose), is very real. The consequences of not adhering to these moral and corporate responsibilities is clear -- all too often recently we have witnessed brands being displayed on and against inappropriate material -- nowhere on the web is this more likely than in user generated social media environments.

Brands should be looking to create and own their online communities, via Online Social Networking Software such as the Reality Digital Opus platform. Enterprise publishers that utilise such platforms will effectively provide advertisers with the solution of safely reaching a new and lucrative audience by offering users all the benefits and features of a rich, Consumer Generated Media environment, whilst ensuring the creation of a brand safe channel for advertisers via the utilisation of the platform's outstanding moderation tools.