Social Media Applications

Rumors of Social Media’s Death Greatly Exaggerated?

by Jonathan Gilliam, Momentum Factor


The last few weeks have been hard on social media firms. Facebook’s shares took another dive after “disappointing results”, and reports of Zynga’s “game fatigue” have sunk theirs as well.

I find following the investment community a good indication of where the technology winds are blowing. It also provides an alternative view to the online “digerati” who can be fickle. A recent newsletter from a financial firm that I follow provides a reality check: according to two very positive reports that came out on social media from McKinsey and Gartner, social media is still very much on the rise.

McKinsey‘s report pointed to the amazing impact of social media and the likely influence it will have in the future. Social media has been adopted faster than any technology in history – it took TV 13 years to reach 50 million people, and the Internet 3 years to reach 50 million, while it took Facebook 1 year to hit that level and Twitter just 9 months. McKinsey estimated 1.5 billion people use social media globally.

McKinsey also reckoned that social media had the potential to contribute an additional $900 billion to $1.3 trillion to the four industries it analyzed. Additionally, McKinsey found that 80% of Companies used social media with 90% saying they received some benefit.

Gartner Group, meanwhile, came out with a study showing that social media was going to reach $17 billion in 2012, up from $12 billion in 2011. Social Gaming was expected to surpass $6 billion this year as well.

For those of us who work in social media and witness its massive influence each day, it is stronger than ever and ingrained in society for the foreseeable future. Direct sellers must adapt.

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