In its short history as called New Media, has been seen as a place to meet with new friends, reconnect with old friends and socialize in an online environment. In a nutshell, social networks have been cool place to hang out but held little applicability beyond that. There has been no lack of funds in Silicon Valley for companies. With the development of sites like MySpace, Facebook and Twitter, there isn’t any question that there is value in the huge amounts of information about people these platforms are able to accumulate; however, there has been no obvious monetization strategy beyond earning advertising revenue. Arguments have been raised concerning the value of those firms; some might say while other claims that the value of the databases is sufficient to justify dollar price tags that their valuations are artificial and inflated.
Social Networking and’s New Value The social networking Business
More recently social networking has spawned a new value proposition that is the business applicability of these huge user-bases these social networks have generated. It may be said that usefulness is held by media for businesses searching for a way take part in communications and to reach out to clients. It hasn’t been done from a marketing, advertising or public relations standpoint, and has given rise to a new business model: The social networking Firm. This brings forth the debate of whether the social networking Firm is a fantastic investment. Given the state of the present financing sources, Venture Capital and Market have been maintaining their portfolio bucks reserving investment to businesses with growth potential earnings streams and an adequate working history.
Social media is now a staple of younger generations’ lives, and also new media’s fastest adopters are individuals over age 30. Considering that the popularity of the business potential that networks retains Fortune 500 companies are currently devoting a part of their advertising budgets to media campaigns and social networks. Pepsi has given Million of the advertising budget for a networking program and firms are starting to follow suit. Obviously, the potential for Your New Media Company is substantial.New media isn’t going anywhere as stated earlier. For the most part it is now a part of the online experience very similar to email. The sites which are considered the gorillas in websites may churn there will always be something to which these communities will migrate. By way of instance, the social networking migration to-date has gone from MySpace to Facebook to Twitter, and the upcoming key change and/or addition to this enormous online social sphere is probably just around the corner.