Technology | Media | Telecommunications

Friday, September 30, 2011

Mobile Social Networking Top Business Model Trends

ABI Research has been studying how mobile device usage is influencing the ways in which consumers access and interact with social networking services.

The results of their latest market study provide insights that will help marketers understand the implications of several closely related trends -- both near-term and long-term.

Social networking may soon become a predominantly mobile activity -- that trend could directly impact the current business models and ultimately effect numerous key players within the leading platform ecosystems.

The number of people accessing social networks from mobile phones will exceed 550 million in 2011, and that figure will more than triple to over 1.7 billion by the end of 2016.

That means over two-thirds of the global user base of social networks will use smartphones and other mobile handsets to access these services.

For Facebook, the growing importance of mobile is both an opportunity and a serious strategic challenge.

On one hand, mobile allows the world’s leading social network to engage with millions of new consumers, but on the other hand its ability to make money from mobile users remains untested.

ABI Research senior analyst Aapo Markkanen says, “A huge problem for Facebook is that while on the web it is a platform, on mobile it’s just another application. To strengthen its hand in the short term we expect Facebook to aggressively take advantage of HTML5, but in the longer term it should absolutely become a mobile operating system of its own.”

The symbiosis of social networks and mobile phones can also be seen in recent moves by Google and Apple.

Google’s attempt at social networking, Google+, has been designed to benefit from deep integration with Android, which is likely to go down well with application developers.

Meanwhile, Apple has teamed up with Twitter and built the microblogging service into the iOS 5. The interesting aspect in the Apple and Twitter partnership is how it can provide iPhone users with a verifiable social identity for websites and apps.

That gives developers a lot of scope to innovate in areas such as authentication, personalization and advertising. It provides a hint of things to come, and how the current trends will likely evolve.