The future of generalist social networks

social-mediaThere’s been some buzz around the news about major foreign investment funds saying that we have to invest in social media. This is causing according to some analysts a kind of bubble that could have similarities with the one that occurred in the late nineties dot.com. Social networks like Linkedin, Facebook or Twitter still don’t generate much profit and still, its valuation has been fired up over any expectation. IT&IS has invited some experts to discuss these issues.

┬┐Expiration, fad? If we take Myspace and its failure as an example, we can see that some Internet projects with massive success can fail if they don┬┤t have a solid business foundation.
The business model of social webs is not clear and the costs structure is not good. It seems as if these projects were made to be sold, to capture the attention of investors, but they don’t easily reach profitability.

The large majority has never known how to establish a clear business model. They tried advertising but in this type of social networks it hasn’t worked well.
The latest data registered on Facebook users in the United States show more mature users than in the rest of the world. This shows a regressive tendency that could be an indicator of user behaviour to general social networks.

The future should belong to specialised social networks. It is logical to think that future social networks will be specialised because the advantage of these, speaking of profitability, is that social networks users would be able to interact with others of the same expertise. Specialised social networks are still new and the general ones like Facebook or Twitter would be capturing a significant share of the users.

According to what has been argued, most of the opinions are opting for the existence of a new trend that could hurt the internet sector but would also clarify the market and maybe strengthen the projects build upon a very rational cost structure (low cost) and have managed to attract demand.

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