Saturday, May 16, 2009

Revealing New Report on Monetizing Social Media Predicts Everyone Will Be Profitable Except Facebook

/PRNewswire/ -- A revealing new report on monetizing social media predicts everyone but facebook stands to make money under the current business structure of leading social networks. The study, the latest from ContentNext Media, Inc. and authored by renowned analyst Lauren Rich Fine, compares the top social network to a local mall, suggesting "it might be time to start charging rent" to be on the platform, as mobile carriers already do.

As things stand, "there's a real danger that application developers who use the facebook platform will become quite profitable while the host corporation will not," says Fine. "Advertising on social nets will never be commensurate with the amount of time people spend on them. And facebook has made several failed attempts at innovative marketing efforts that members loudly rejected."

Other findings from the report:
-- There has been more than $25.5 billion in social media M&A and
investment activity in 902 transactions over the past 27 months.
-- Gaming is the largest sub-category in VC funding -- with more than
$800 million raised.
-- Outside of gaming, excitement around virtual currency could come to a
screeching halt given the predominant "novelty" factor present in the
enthusiasm.


"The merging of social and mobile is upon us," adds Fine. "And there are proven successful strategies that social network companies can adopt from the mobile carrier model."

In her analysis last month of the mobile industry, Fine warned not to expect mobile growth to be a panacea. "Concern and confusion over costs and hardware could mute near-term growth," she cautions.

"The Changing Mobile Industry and What It Means for Media Executives" is part of ContentNext Media's highly regarded report series that also includes in-depth looks at digital music, online news and political sites, online fantasy sports, Web content-management systems, and a piercing dissection of the latest online ad forecasts.

"With this pair of reports, ContentNext Media continues its leadership role in identifying and analyzing the most important issues and opportunities in digital media," said Nathan Richardson, CEO of ContentNext Media. "Lauren's seasoned and deep insights into the financial nuances of the media industry, combined with our comprehensive expertise in the most important business trends and issues in the sector, create an unparalleled level of insight and advice for the unique challenges facing decision makers in the media industry today."

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