Social media has penetrated virtually every aspect of modern life. The vast universe of social media now holds collectively 3.8 billion users representing approximately 50% of the global population.
With an additional billion Internet users expected to come online in the coming years, it is possible for the social media universe to expand even further.
How networks accumulate
To begin with, let’s look at how social networks compare to monthly active users (MAU) – an industrial metric widely used to measure the success of these platforms.
|Rank||Social network||UIA in the millions||Country of origin|
|# 1||2 603||🇺🇲 USA|
|# 2||2,000||🇺🇲 USA|
|# 3||YouTube||2,000||🇺🇲 USA|
|# 4||Messenger||1300||🇺🇲 USA|
|# 5||1,203 th most common||🇨🇳 China|
|# 6||1,082 th most common||🇺🇲 USA|
|# 7||TikTok||800||🇨🇳 China|
|# 8||694||🇨🇳 China|
|# 9||550||🇨🇳 China|
|# 10||Qzone||517||🇨🇳 China|
|# 11||430||🇺🇲 USA|
|# 12||Telegram||400||🇷🇺 Russia|
|# 13||Snapchat||397||🇺🇲 USA|
|# 14||367||🇺🇲 USA|
|# 15||326||🇺🇲 USA|
|# 16||310||🇺🇲 USA|
|# 17||Viber||260||🇯🇵 Japan|
|# 18||Line||187||🇯🇵 Japan|
|# 19||YY||157||🇨🇳 China|
|# 20||Pulling||140||🇺🇲 USA|
|# 21||Vkontakte||100||🇷🇺 Russia|
Here is a more detailed look at the individual social platforms and their trials and trials:
To put it mildly, Facebook has its hands full. A number of companies are boycotting Facebook ads as the platform struggles to prevent the spread of misinformation.
Still, its stock price continues to advance to new heights, while the traditional economy faces less than rosy forecasts. Facebook still owns the largest group of users, getting closer to 3 billion MAU brand – a breakthrough to be achieved by every company.
Snapchat and founder Evan Spiegel have had an uneven road from an IPO in 2017. The stock price peaked at nearly $ 4 in 2018, reflecting investor concerns about the introduction of Instagram Stories. Shares have recently surpassed the $ 20 mark, although there is still long-term uncertainty about monetization and profitability.
YouTube competes directly with traditional television and streaming programs for eyeballs. The platform entered revenue of $ 15.1 billion in 2019, almost doubled their numbers in 2017.
The parent company Alphabet is investing in YouTube with new releases such as YouTube Music (merged with the former Google Music) and YouTube Premium, a package-based subscription platform providing music, ad-free content and YouTube Originals. In appearance, the future of YouTube will be much more than just videos.
China’s largest social platform, WeChat is thriving, now holding huge 1.2 billion MAU. As part of the conglomerate Tencent Holdings, they belong to the BATX group, which is seen locking horns with the American Big Tech.
There has been a whisper of Reddit’s IPO on Wall Street for some time. Although such an event has not yet taken place, Reddit has certainly had success. With 430 million MAUs compared to 330 million in 2018, the company continues to attract a larger audience. The term community has taken on different meanings in the digital age and Reddit represents this transition with their ever-growing network of users.
Instagram has been vital to Facebook’s success since its $ 1 billion acquisition in 2012. The platform attracts a younger audience than Facebook and demonstrates the ability to remain multifunctional, in particular through the implementation of Instagram Stories and Reels.
Busy schedules don’t seem to bother Jack Dorsey, who has not one but two jobs on Twitter and Square. Twitter has managed to achieve profitability in the last two years, reporting net income figures from $ 1.2 and $ 1.5 billion in 2018 and 2019 respectively. Undoubtedly, their work is limited, as they continue to struggle with fake news and similar contradictions on their platform.
If any publicity is good advertising, then 2020 is the year of TikTok. The headlines include a breach of confidentiality with alleged ties to the Chinese Communist Party, a ban on the application by Indian Prime Minister Narendra Modi, and now talks about a partial acquisition from the United States. Potential buyers include leaders Microsoft, Twitter and Oracle.
Social media under trial?
Despite the list of winds facing social media, about half the world is already in it – and it doesn’t seem to have an end to future growth.
How did the companies exposed to the social media universe in 2020 cope?
|Companies with exposure to social media||Price refund from the beginning of the year|
Widespread participation in social media comes with a fair set of issues. Some companies, such as Facebook, have found themselves at the crossroads on both sides of the political spectrum. With growing concerns about privacy and data, social media will also be at the center of shaping the future of government, business and politics.
Only time will tell how high the number of users will reach. The long-term trajectory implies that more space remains in the engine. There are still parts of the world that are just beginning to have the technological infrastructure to make social media possible. Probably future growth will come from this path.
If the stock prices of social media companies matter, their performance this year, combined with the fact that they are trading close to record highs, supports a similar growth thesis.
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