Popular Social Networking SitesSome of popular social networking sites include Facebook, MySpace, Twitter and Google plus. Facebook is free to users and generates its revenue from advertisement such as use of banner ads. The main revenue for Facebook comes from brand advertisement. The advertising revenue is expected to drop owing to low click through rates (Sabin-Wilson, 2011). Another revenue model for Facebook that is becoming popular is Facebook Credits. Credits are virtual currency for games. Moreover, Facebook generates revenue via the Facebook Gift shop (Lopuck, 2012). This is a product that enables facebook customers to send virtual gifts to their friends.
The gifts cost on average $1 per gift. On the other hand, twitter revenue comes from advertising products such as promoted tweets, promoted trends and promoted accounts (Warner & LaFontaine, 2010). These products allow advertisers to push tweets to users who may even not follow the advertiser’s account. The social media also uses political advertising to earn revenue. In spite this; twitter revenue models are said to be still in their infancy stage. Unlike facebook and twitter, which seem to be diversifying their revenue models, MySpace revenue solely comes from advertising (Sabin-Wilson, 2011).
The user does not pay anything for using MySpace social media. It is argued that through its web site and other ad networks, MySpace is one of the most sophisticated social media in terms of collecting data about users and hence the ability to target advertiser’s ads based on users behaviour. Like other social media, Google plus generates its revenue via advertising. However, the Google plus advertisements comes with inbuilt analytic that enables advertisers to know the value for their promotion via the social media. SWOT ANALYSIS: FacebookStrengthsFacebook has rapidly grown in USA and worldwide Facebook is the leading social networking sites Facebook is evolving very fast and is being adopted by many at the same time The firm has attracted many top talents from GoogleThe Facebook social network is easy to use and thus is user friendlyThe social network has high customer loyaltyThe financial position of Facebook is strong The firm is a leader in the market share for industryThe interface is translated in over 70 languages enabling many people in the world to adopt and use itThe firm has a large number of customersFacebook acts as a virtual reality to usersIt provides a fun element to usersIt allows businesses to connect to consumers via advertisementIt allows businesses to create free profiles and pages It is the leading application on the cell phoneIt allows people to connect with old friendsIt has easy to use featuresIt allows users to follow friends, companies and celebritiesThe new layout is clean and allows users to quickly send them messages directlyThe new platform has the profile divided into tabs which allows it run much faster than ever beforeThe new platform has the wall and the minified integrated into a single aggregated feed which allow easier manipulation of user profileThe new platform has a single dedicated tab and many other features which allows users to easily share photos and videosBlog subscription service on new platform allows users to join their favourite blogs and enjoy all its contents without leaving FacebookThe new platform also allows users to create a profile badge which they can place on their blog or website that can show their current status and act as business card which can in turn pull people from outside Facebook to become their friendsThe new platform also has the Notes feature which allows people to get more involved in conversationOpportunitiesFacebook has an opportunity of becoming a default address bookIt can allow creation of business partnersAdvertising on Facebook an opportunity to the firm to reach out to its target market globallyFacebook has an opportunity of being used to study consumer behaviour for different businessesFacebook has an opportunity for drawing customers into stores by offering promotions via Facebook pageFacebook can be used by businesses to collect data via surveys and pollsIt allows users to communicate freelyFacebook may be used to buy/sell through Facebook marketplaceFacebook has an opportunity to spur innovationFacebook has an opportunity of launching Facebook e-mailIt also has an opportunity to launch Facebook video chartFacebook presents a great opportunity for promoting yourself, businesses, products and servicesFacebook social adverts have a great opportunity to get targeted advertisementFacebook has the potential of integrating with other services to enable it unleash the full power of the Web 3.0Facebook also has the potential of changing power structures of people who are within individual network (Chris & Mari, 2010). WeaknessesThe use of Facebook raises security/Privacy issuesFacebook has a complex interface for usersThe network is becoming more corporate than earlier anticipatedThe constant changes to page design threaten loyalty of usersFacebook is a bit confusing to business usersFacebook faces liabilities such as bugs and other problems associated with operation of websitesFacebook does not provide a platform where users can get real answers hence most of them rely on FAQs. Facebook does not allow users to customize their pagesThe positioning of flash animation often interfere with usersFacebook also has too many applications most of which are irrelevant and uselessFacebook chat system has very many glitchesthe new platform of Facebook has removed viral potential which used to make things easily found and immediately visibleThe new platform has restricted sharing of application which will lead to loss of subscribesThreats Facebook faces competition from other social media networks such as twitterSocial media networks are often short lived as exemplified by MySpace and friendsterFacebook faces threats from new entrants in the industry such as twitter and Google plusIt is also threatened by privacy settings which have seen many photos being leaked per yearFacebook is also faced with spamming problemFacebook lacks proper email control which can be used to filter messages and emails that are sendTwitterStrengthsIt has a very high publicityIt lacks competitor in micro bloggingIt is simple and powerfulIt is freeIts brand name is strongIt has created bluebird crazeOther application authentication is provide by the siteHas many application developers around its APIIt has not yet been implicated in evil activitiesIt is liked a lot by businessesIt is real timeOne can search through itIt allows users to discover links and share toolsOpportunitiesIt can evolve into a dominant search engineIt has the opportunity of becoming the largest social media marketing toolIt can develop a twitter connect tool that can enable every site socialIt is likely to acquire some of the url shortening servicesIt is likely to emerge as a dominant way via which businesses communicate with customersWeaknesses Its network is down more often and hence needs more horsepowerIt has limited API callsIt has unequal distribution of tweets with 10% of its users accounting for over 90% of tweetsHas low retention rates of about 40%Threats The much publicity about it might burn it out in the long runIt has high rates of spammingIts revenue model is still in infancyMay face problems with unauthorized accounts on behalf of celebritiesBrand image may be hurt by paid twitterOther social media players my offer competition in micro blogging sphereMay face competition from new entrants such as Friendfeed and identi. caProspects of TwitterNear termThe near term prospects of twitter are to enhance their revenue model by provision of advertising and customer relationship management services.
This is expected to increase the sites revenue. The site is already experimenting with house ads, which involve promoting features of their service. Critics have argued that this is not the best business model for twitter given the low click through rates associated with social media since most people go there to communicate (Sabin-Wilson, 2011). The CRM space has been hailed as the best opportunity for twitter to tap into the near future to increase its revenue.
By offering their own CRM system and own analytics system to brands, twitter will be able to track and manage conversations within the 140 sphere. This can form a major revenue model for the site since the created brand management system can be resold to global companies to monitor, alert, track, prioritize, assign, follow up and report on the interaction with brands. Medium to long termTwitter’s medium to long-term prospects is to become the main news consumption source on the web and everywhere else.
As such, the network is involved in simplification of everything in order to bring more users and more content. Using Facebook for e-commerceE-retailFacebook may be used in e-retailing by creating fan pages for posting contact information. A company may also use facebook in e-retailing to post recent updates. Moreover, a firm may utilize facebook in e-retailing to allow the company and its fans to communicate on the main page. In addition, facebook may be used in e-retailing by a firm to implement discussion on its fan page.