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Unit 7.1

Social Networks and Online Communities

IT 204: E-Commerce

Learning Objectives

By the end of this chapter, you will be able to:

  • ✅ Trace the historical evolution of social networking platforms.
  • ✅ Identify and describe the core features that define a social network.
  • ✅ Analyze the primary business models used to monetize social networks.
  • ✅ Evaluate the role of social networks in the Nepali e-commerce ecosystem.

The Dawn of Social Networking 🕰️

The concept of online social connection is not new. Let's look at the pioneers.

  • 1997: SixDegrees.com
    • The first recognizable social network.
    • Allowed user profiles and friend connections.
    • Ahead of its time; limited internet penetration hindered growth.
  • 2002: Friendster
    • Considered the "big bang" of social networking.
    • Popularized the concept of a "Circle of Friends."
    • Showed the massive potential for online social platforms.
  • 2003-2006: The Rise of Giants
    • MySpace, Facebook, and Twitter launch, each with a unique angle, forever changing the digital landscape.

Core Features of Social Networks

What makes a social network, a social network? 🔍 These core components are key.

👤 Profiles

A digital identity where users share information about themselves (name, interests, photos).

🔗 Connections

The "network" itself. Users connect via friend requests, follows, or other associations.

📰 News Feed

An algorithmically sorted stream of updates from a user's connections and followed pages.

💬 Messaging & Groups

Tools for direct communication (1-to-1) and community discussion (many-to-many).

The Engine of E-Commerce: Features in Action

Example: A Small Bakery in Kathmandu

  • Profile: The bakery creates a Facebook Page with its name, location, and photos of its cakes.
  • Connections: Customers "Like" or "Follow" the page to stay updated.
  • News Feed: The bakery posts a "Daily Special" which appears in its followers' feeds.
  • Messaging: A customer sends a private message to place a custom birthday cake order.
  • Groups: The bakery joins a "Kathmandu Foodies" group to promote its new menu.

Monetization: How Social Networks Make Money 💰

These platforms are free for users, but they are massive businesses. How?

The Core Principle: If you are not paying for the product, you ARE the product. User data and attention are the primary assets.

1. Advertising

The dominant model. Businesses pay to place highly targeted ads in user news feeds, stories, and search results.

2. Premium Services

A smaller, but significant, revenue stream. Users pay a fee for enhanced features or an ad-free experience.

Deep Dive: Business Models

🎯 Advertising Model

Key Concept: Micro-targeting

Social networks sell ad space to businesses, allowing them to target users based on demographics, interests, online behavior, and location.

Example: A clothing store in Pokhara targets ads for trekking gear specifically to users in their 20s who have "liked" pages related to hiking and travel.

⚡ Premium Services Model

Key Concept: Freemium

The basic service is free, but advanced features require a subscription.

Example: LinkedIn Premium offers features like seeing who viewed your profile, advanced search filters, and InMail credits for a monthly fee.

Practical Application: The Nepali Context 🇳🇵

Social networks are not just for fun in Nepal; they are a vital part of the e-commerce infrastructure, especially for SMEs.

For many small Nepali businesses, a Facebook or Instagram page IS their entire online presence and primary sales channel.

Let's explore the key players...

Dominant Platforms in Nepal's E-Commerce

Facebook & Instagram

  • The undisputed leaders.
  • Used for everything: branding, customer service, and direct sales via Marketplace, Groups, and DMs.
  • Ideal for visual products like fashion, handicrafts, and food.

TikTok & Viber

  • TikTok: Rapidly growing for "shoppertainment." Short, engaging videos are used to demo products and drive impulse buys.
  • Viber: More than just messaging. "Viber Communities" act as a direct marketing channel for brands to engage loyal customers with exclusive offers.

Case Study: A Handicraft Store in Patan

Multi-Platform Strategy in Nepal

  • Instagram: High-quality photos and Reels showcasing the intricate details of their products. Uses "Link in Bio" to direct to their contact info.
  • Facebook: Manages a Page for official announcements and uses Facebook Marketplace to list individual items for sale locally.
  • TikTok: Creates short videos showing the artisans at work, building brand story and authenticity.
  • Viber: Maintains a "VIP Customer" community to announce new arrivals and offer special discounts first to repeat buyers.

Key Takeaways 📊

  • Social networks evolved from simple connection tools to complex ecosystems for communication and commerce.
  • Core features like profiles, news feeds, and groups are the building blocks for online community and engagement.
  • The primary business models are targeted advertising (leveraging user data) and premium "freemium" services.
  • In Nepal, platforms like Facebook, Instagram, and TikTok are not just marketing tools but are often the entire e-commerce platform for small businesses.

Thank You

Any questions?

Next Topic: Unit 7.2 - Social Commerce and Marketing Strategies

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