Pulling from my background in Finance and frequent discussions about Facebook valuation with @keeganlarson has lead to this post.
The graph below represents Google searches for the terms social media, Facebook, Twitter and Foursquare.
Does this help date the buzz words? I hope so.
Now don’t worry I won’t be using technical analysis when arriving to my conclusions. It’s all about the fundamentals.
Social media aka New Media is bullish. Let’s not go into “Hey, bull markets are only for traded items.” How different are they when it comes to comparing graphs. The social media trend line in the graph below really represents the industries development.
Facebook has grown from a dorm room idea to a world phenomenon over the last 6 years. Those of you with University emails, like myself, opted in and fought about the transition from Myspace. But in 2008 the world caught on. Then BOOM! As you can see from the graph 2009 changed the rules of social networking. Friending bosses, co-workers and parents is a requirement for professional acceptance.
Twitter stormed through 2009 showing that tweeting would become a house hold experience.
Foursquare
With huge growth at the tail end of 2009 and rapid takeoff in 2010, location based networks like Foursquare are changing the social media climate and adapting geo-tagging as a standard that Twitter and Facebook need to pay attention to.
Foursquare: Why It May Be the Next Twitter
Social Media Adoption Curve
Current social media environment, April 2010 marks all current social network members as Early Majority.
Social Media Innovators – Brave people, pulling the change. Drawn by technological advancements and curiosity.
Social Media Early Adopters – Respectable people, opinion leaders, trying out new applications and sites but in a careful explorations type of way.
Social Media Early Majority – Thoughtful people, careful but accepting change more quickly than the average and strive to keep up with the new and relevant trends. (Current social media climate)
Social Media Late Majority – Skeptical people, will join sites and try new things only when the majority is using it.
Social Media Laggards – Traditional people, caring for the “old ways”. are critical towards new technologies and ideas and will only accept it if the new idea has become so mainstream or even a tradition.
Social Media Marketing
Marketing and advertising firms claim that this kind of involvement has been going on since the 90’s with AOL chat rooms. But, seriously not at the magnitude or brand impact. Yes, this new media can give an organization access to customers, evangelists, supporters, fans, followers, and subscribers. But what are you doing to align this “New Media Marketing” will all areas of the business. Strategically.
Examples –Red Ocean vs Blue Ocean.
The Red Ocean strategy defines the market how it is for every industry. They have a defined market, defined competitors and a typical way to run a business in any industry. Red Ocean is like swimming in shark infested waters.
The Blue Ocean, on the other hand, is calm, smooth, clear with plenty of space and available resources. This is where every business would like to be.This is where everyone would like to be and it is possible for you to have a Blue Ocean.
Social media is still “NEW” and entering this environment with long and short term objectives that align with the businesses strategic plan will allow swim along in clear waters.
Please no Eliot Wave Theories. Also, no 3 legged correction. 🙂
via(wordle.net, google.com/trends)