NEW YORK (Feb. 17, 2009)—Social networking continues to change, and social network marketing must evolve with it. Social network sites have yet to find a solid revenue stream, but there is still time. Social network usage is not tapering off. Instead, it is growing. Not only are more consumers joining social networks, their level of involvement is deepening. So even if the revenues aren't there yet, the networks are still building and making them possible in future.
The number of Internet users visiting social networks at least once per month increased an estimated 11% in 2008, to 79.5 million, and will rise another 11% in 2009, to 88.1 million. Between 2008 and 2013, the number of social network users in the US will increase by an estimated 44.2%, to nearly 115 million.
Key social networking trends to watch in 2009 include the expanding user demographics and continued rise in engagement, the impact of mobile social networking and Twitter, and whether the substantial growth of Facebook in the second half of 2008 can continue.
With penetration already high among teens and young adults, there is little room for further growth among those demographics. Growth will come from members of Generation X and boomers, but there will also be increased activity in the tween market. User engagement has yet to hit a plateau. In fact, people who join social networks in 2009 and beyond may become frequent users more rapidly than those who first joined a year or two ago.
“That is because the size of the network drives frequency,” said Debra Aho Williamson, senior analyst and author of the report “Social Networks: Five Consumer Trends for 2009.”
“The more people on the network and the more friends a person has, the more reasons there are to visit the site repeatedly to see what friends are saying or doing,” Ms. Williamson said.
Mobile social networking is growing as well, and the more phones that have technology to use location-based services, the more valuable mobile social networking will be. Such services will enable social network users to find and meet up with friends in person. Devices that provide a better user experience, such as the iPhone, allow users to participate in certain activities that are commonly done online, such as uploading video. Twitter will have the most profound effect on mobile social networking, making it as easy as typing 140 characters and uploading a photo to share information—and break news—with friends and followers worldwide.
Social networks also allow consumers to socialize the shopping process. With the mainstreaming of social networking, consumers will be more likely to turn to their contacts for advice and recommendations. Social networks are also a venue for discovering new products and services virally, through friends linking to things that interest them. Marketers have an opportunity to present an engaging offer at the right time.
Consumers are getting a lot more information about products and services from social networks than marketers think—and very little of it comes from the marketers. Status updates and social network posts contain myriad bits of data about consumers' likes, dislikes and potential purchases. This organic flow of information is difficult to track and capture, but companies should find the tools to understand the impact of social network communication on the purchase process.
“The imperative for marketers is to make sure their social network activities are as fresh and current as the constantly changing profiles of their members,” Ms. Williamson said.
For more information on social networks, or to speak with Ms. Williamson, contact the media staff listed below
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