Here Today, Gone Tomorrow? The Future of Sites Such as Facebook and Twitter

by Mary Kate Smither, Vollmer Public Relations Dallas

Each day, I log on to my computer and seem to discover that another social media site has launched.  Along with questions about what the site offers, whether I should join and how I’ll find the time to manage my account, I’ve also started to wonder about the business side of the ever-growing universe of social media.  How can all of these sites possibly sustain themselves, become profitable and ultimately grow?

This caught my attention again recently when I read in the Los Angeles Times that Facebook had become profitable ahead of its original predicted date of 2010.  With the addition of 150 million users, for a total of 300 million users in less than nine months, there’s no doubt that Facebook has seen astronomical growth and success.

But how did Facebook do it, and how will other sites like Twitter follow to achieve equal, or even greater, long-term success?  According to a recent article in Advertising Age, keys to Facebook’s success are: its continued user growth, with a fastest-growing demographic of users 35 and up; its low overhead, with a total of 1,000 staff members, or one engineer for every million users; and its strong advertising partnerships with companies such as Microsoft.  Facebook also continues to work on developing its own advertising model to achieve greater benefits from brands wanting to use the site as a vehicle for engaging consumers and other businesses.

Meanwhile, it appears that Twitter is taking a stronger look at advertising as its road to profitability, as well.  As has been noted in recent reports, Twitter’s changes to its terms of service have paved the way for advertising and possible future revenue.  As founder Biz Stone stated in a recent blog post, Twitter is interested in keeping its options open.  Other reports relay that Twitter may begin working with verified corporate accounts as a way to begin driving revenue, with The Wall Street Journal citing companies like Dell and Starbucks and their already popular tweets that help further their brands and build business. It will be interesting to see how sites like Twitter can learn from the current success of Facebook and build their own winning models.

In the meantime, we can all breathe a deep sigh of relief as our Facebook addictions remain alive and well. Friending, sharing, becoming fans of our favorite brands and causes are all still possible--at least for now.