In a recent article by ZDNet reporting a lack of business proposition taken by social media companies, fishbat responds to the report stating that social media is â€˜just getting started.’
Writer Liau Yun Qing for ZDNet News reported that social media experts believe that social media companies like Facebook and LinkedIn, while profitable, lack a clear business proposition that defines their monetary goals. fishbat, an online marketing company, weighs in on the perspective of the social media marketing experts with an expert position.
According to ZDNet News, social media companies like Facebook and LinkedIn derive revenue from an unclear business proposition. In the article Alex Ashby, research analyst at exchange-traded funds Global X Funds, had commented that “Facebook derives a significant amount of revenue from advertising, while LinkedIn generates revenue by charging recruiters and headhunters for premium services to aid in hiring and marketing purposes.” Additionally, Ashby added that “Both companies have been aggressive in their expansions in terms of hiring as well as acquisitions, and these investments may pressure profitability in the short term though revenues continue to expand.”
ZDNet News reported that Lyon Poh, partner of management consulting at KPMG Singapore, believed “social network operators have yet to find a clear business proposition, and they are actively looking for clarity through acquisitions.” In addition, Poh states, “Social networking companies have to go beyond offering basic social networking services in their business model, and they have to be very clear who their target customers are–consumers or corporations.”
“Social media is a fast paced industry that quickly evolves,” stated fishbat VP of Internal Operations Sida Li. “Social media is just getting started. The social media industry is still settling into its own and is quickly defining itself as time goes on. I doubt that we will see a solid business proposition in the near future but perhaps this is the key to the social media industry’s success.”
Ashby, according to ZDNet News believes that the Asian market, particularly China, “still poses challenges to social media companies. Web censorship is one clear barrier, with Facebook and Twitter banned in China.” In addition, Ashby states that local internet giants such as Tencent and Sina will prove to be an opposing force to Facebook and LinkedIn.
“No matter what the obstacle, social media will persevere,” added Li. “An unclear business proposition could be considered a problem when introducing Facebook and LinkedIn to the Asian market but I do not think it will stop its forward force. Social media has become as common as television and there is no barrier that social media cannot break.”
fishbat, Inc. is a full service online marketing company. Through social media management, search engine optimization (SEO), web design, and public relations, fishbat flourishes as a social media agency to raise awareness about your brand and strengthen your corporate image.