Very interesting by Bear Stearns, about What Should Yahoo do regarding Social Networks ? (thanks Olivier)
Main points :
1 – Leisure Social networks (MySpace, FaceBook, …) could progressively take on the usual generalist portals thanks to their open API and incremental add of new applications.
2 – a very strong growth in terms of subscriptions, use and page views (rising prime page CPM level from $4 to $18in 2016 !)
3 – If social networks come from youth, it is no longer exclusive : out of the 70 M of unique visitors on MySpace, 42% have between 35 and 54 years old (34% for FaceBook)
4 – not a US phenomenon : 56 and 63% of FaceBook and MySpace users are located outside the US.
5 – If Yahoo! bought out FaceBook, this could dramatically improve their efforts to targeted marketing thanks to the tons of personnal information everyone share with one another.
Some data :
> June 2007 in the US : 70 M VU for MySpace, 28 M for Facebook (respectively 109 M and 47 M if you take into account the international aspects)
> 51% of the time spent online by 13-24 year old is on user-generated content websites.
> Internet Ad market share made by Social Networks could reach 12% in 2011 (vs. 5% in ’07e)
> Facebook value could reach $bn 4.5-7 based on a EBITDA multiple of 45x.
This slideshow echoes also a note on TechCrunch on the coming opening of the FaceBook infrastructure following the first dent made by people using the FaceBook interface made for the Iphone on Netvibes … (opening as in “not having to log in before using Facebook services”).
Social Networks (aka SN) is fuzzing all around, but for some reasons : the tremendous growth of those social platforms raise questions.
– Is it always all about community ? Can’t some sociologist show that the way that start-ups are built reflect particular aspects of the American Culture and not necessarily how every society is functionning ? therefore doesn’t the US export via another channel its Weltanschauung?
– Everybody is focusing on the growth of those platforms ? where are the analysts of the Web Dumpster (or as TechCrunch calls it, the Terminal) ? not necessarily analysts of the dot failures, but the analysis of the old glories that faded away : old networks, old unescapable websites (you name them). Lessons could be as interesting as successes. (ok Darwinian theory is just fine but don’t we need some refinements here?)
– Don’t people have a work life anymore ? (there would be plenty to say about that last one).
What do you think ?