Innovation is always taking place around us and only getting faster every day.
I thought facebook would stand the test of time, and arguably it will through its acquisitions, but the platform itself would not survive a re-birth.
Based on facebook’s public valuation, each user is valued at $276.92 (calculated as 589.85B market cap divided by 2.13B avg monthly active users). In 2017, facebook only brought in around $20 per user in advertising.
Facebook will continue to expand in emerging markets. As their retention and usage continues to decrease with the younger demographic in the states, a multiple of almost 24 on the annual revenue per user doesn’t seem justified. Will advertising revenue increase enough to justify it? I don’t think so.
We haven’t seen another social network pop-up and garner mainstream appeal in several years (even musical.ly had an extremely limited demographic) – Snap was created almost seven years ago.
While social networks in their current form may have already reached their pinnacle usage amount in first world countries, there may be an opportunity to still innovate in social messaging beyond the current functionality offered by social platforms or even messaging apps, such as whatsapp, telegram, facebook messenger.
In addition to growing up with social networking, Gen Z is communicating less via email – Teens prefer messaging through social media apps, even more than texting. Apps like slack convey the rapid real-time communication across multiple projects millennials have come to expect through their inheritance of an on-demand culture.
Slack was the fastest company to be worth $2 billion back in 2015 – The company is now worth over $5 billion. However, Slack’s usage beyond business circumstances is relatively limited (I wrote about how our company uses slack here).
I know a few social circles or friends groups that use slack, but not many. There is room for innovation in group messaging – We need platforms which enable us to connect deeper with those we love and or are doing business with.
It’s my prediction five years from now we will be messaging and communicating with our friends, family, and external business networks on a different platform than the ones which currently exist today. I believe this platform will be subscription based instead of advertising driven.
Social media platforms were originally birthed to connect our lives digitally, but there is another wave of innovation coming which will evolve our real world social lives into a more effective digital format.