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Social Networking: Brand Power vs. User Power
Generator Research Limited, Aug 2006, Pages: 10
Social networking has entered a new phase: the past few years have been characterised by brands taking a strictly hands-off approach while mostly letting users do their own thing.
Today, a carefree, easy-going global user base comprising over 250 million 15 to 25s is about to meet hard commercial interests as brands try to monetise their investments by placing targeted ads on user pages, based on the personal information contained on those pages.
If this approach is successful, current trends suggests the emergence of a new ad industry where access will be gated by a few large brands which will become established in each national market, each having achieved a critical mass of users.
But this outcome is not assured because the leading social networking brands will need to maintain their relevance to a constantly changing youth demographic while finding ways to extract money from fickle, savvy users in a ways that are non-obtrusive and transparent. Because the intended outcome has considerable execution risks, this report explains an alternative development path for the market.
The report begins by reviewing the very latest market developments, including the recent announcement between Fox Interactive and Google. The report then explains the anticipated market outcome together with its risks by looking at consumer behavioural aspects and the associated business implications.
Finally, the report explains two market development paths, one of which is radically different to the expected one but has the potential to be commercially successful. Some companies will be winners and others losers in this alternative view of the market.
Topics Include:
- Market Roundup
- Consumer Behaviour
- Business Drivers
- Brand-driven Market
- User-driven Market
- Winners and Losers
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