Hi, need to submit a 2750 words essay on the topic Assessment of a social networking company.Download file to see previous pages... Among these sites, MySpace.com is undoubtedly the market leader. MyS

Hi, need to submit a 2750 words essay on the topic Assessment of a social networking company.

Among these sites, MySpace.com is undoubtedly the market leader. MySpace.com accounts for an impressive 47.4% of the total market share. Facebook is second on the list with the market share of around 18%. Orkut and Flickr are next in the list and they account for almost 7% of the market share, each. (MC Marketing Charts)

Many experts claim that the websites operating in this industry may experience a fast growth and an eventual chill if they do not develop long-term strategies. For example, new websites can easily take away the market share of old, if they do not innovate and strategize their operations. To support their argument they give the example of Orkut. In the past, Orkut was growing at a very fast rate but it did not innovate as result new websites came and experienced a massive growth at the expense of Orkut.

It is also believed that with the passage of time, as the industry matures, these sites are going to attract more and more traffic. This large turnover will encourage companies to advertise more on these websites. As a result, these websites will experience an even larger growth in their revenues. As a result, many big brands consider advertising on these sites as a better way to grab the attention of "target market" towards their products. (Nielsen) This industry, in the recent times, moved from niches to become one of the most coveted sectors. This growth has also caused creative destruction for the other mediums of marketing like radios and televisions.

Earning Revenue from Advertising:

The boom in social networking has blossomed opportunities for advertisers to start using these networks as a vehicle to reach their target market. For e.g. in Italy, Maserati is using social networking websites to reach out to its customers.

However, if we analyze the situation, we can reach a conclusion that those advertisers who want to advertise on social networking sites have to overcome a few challenges. Though, advertising on the social networking websites is increasing, but it is still very less, compared to the number of people who use these networks. (Review) The diversified nature of the environment means that standard ads won't be able to succeed in this market, and it is imperative that different approaches should be tried to find out the mindset of people who use these networks.