Global Conference 2011
The Power and Economics of Social Media
Tuesday, May 3, 2011 / 11:00 am - 12:15 pm
As you read this, you might be logged into Facebook, watching a YouTube video that was Tweeted by a friend. Soon you'll be able to rent and stream movies on the social networking site. The 800-pound gorillas Facebook and Twitter have market valuations of $70 billion and $7 billion, respectively, while two-and-a-half-year-old Groupon has taken social commerce to new places with $760 million in revenue in 2010. Social media's reach has grown so powerful that Facebook and Twitter have been credited with aiding game-changing protests in the Middle East. But are any of these sites really profitable? Are their businesses sustainable? Most Internet revenue models are based on subscriptions or advertising, but the power of the purse for social media lies with access to their large base of users. Can these sites get beyond privacy concerns so they can better monetize their customer base? What are the business models of the future?