State of the nation on social networks

I have just seen some very interesting data on social networks.  The highlights are below.  Unfortunately I can’t name the source, but it is a reliable one.

  • As a category social networks continue to grow rapidly – with global billions of minutes spent on these sites up 33% to 126bn in the seven months to April 08.  That is 10% of all online minutes.  This is Comscore data.
  • Personal email services have been the big casualty with monthly usage falling by a third amongst the 15-24 age group.  Socnets are faster, apparently.
  • The US and UK are heavily consolidated already – Facebook and Myspace have 94% market share in the US (39% FB, 55% Myspace) and Facebook, Bebo and Myspace have 89% share in the UK (42%, 34%, 12% respectively).  In the UK Facebook is gaining share rapidly at the expense of Bebo and Myspace
  • Monetisation is weak with the share of the online ad market falling well short of the share of attention.  Within socnets Facebook stands out as poor in this regard with it’s share of socnet advertising well short of its share of socnet pageviews.
  • It’ll be like email, the web 1.0 comms system – huge traffic, has to be run as part of a bigger service. I doubt SocNets are technically faster than email though, I suspect its where friends are, so more likely to get a quicker response.

  • It’ll be like email, the web 1.0 comms system – huge traffic, has to be run as part of a bigger service. I doubt SocNets are technically faster than email though, I suspect its where friends are, so more likely to get a quicker response.

  • nic

    Ah, good thought Alan, it might be because it is where friends are, and because you don’t need to bother with an address book.

  • nic

    Ah, good thought Alan, it might be because it is where friends are, and because you don’t need to bother with an address book.

  • I agree. The more effective the communication tool the less useful it is for advertising as people are focused on their own communications. MySpace/Bebo are more about sharing “produced”content than Facebook, which why they are probably marginally more effective for advertisers.

  • I agree. The more effective the communication tool the less useful it is for advertising as people are focused on their own communications. MySpace/Bebo are more about sharing “produced”content than Facebook, which why they are probably marginally more effective for advertisers.

  • Nic – what about social networks working in a specific vertical like WAYN. Easier to monetise?

  • Nic – what about social networks working in a specific vertical like WAYN. Easier to monetise?

  • nic

    James – niche socnets do monetise better, you are right. To generalise on Henry’s comment – anything non-comms will generally monetise better, of which niche socnets focused around an interest area are a good example.

  • nic

    James – niche socnets do monetise better, you are right. To generalise on Henry’s comment – anything non-comms will generally monetise better, of which niche socnets focused around an interest area are a good example.