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The Future of Social Media

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Social media has grown increasingly popular in the past few years and has had a significant effect on the way companies do business. In the next few years, more changes will roll out as social media efforts expand outside of a company’s marketing department into all aspects of a company’s business.

Debra Aho Williamson, an analyst for eMarketer, says advertising will not be the primary revenue driver and notes that others have said advertising has failed as a business model for social media.


Rather, the business models that show the strongest potential are in the areas of analytics, search and television. Additionally, location will become more important to social media with strengthened brand monitoring efforts.

Despite the future changes to social media, one thing will remain the same: the source, or its users.

“The voice of the consumer is only going to get louder and stronger,” said Ms. Williamson. “It will shape what social media is and what it will become. Not too long ago, a company might have made major changes to its products or services based on a few focus groups, some financial planning and a degree of gut instinct. Social media has already changed all that. And more changes will come.”

Source: eMarketer; February 15, 2010

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