In its short history Reconnect with old friends, media, as called New Media, has been seen as a place to meet new friends and socialize in an online environment. In a nutshell, social networks have been cool place to hang out but held little applicability beyond that. There has been no lack of funds in Silicon Valley for companies. With the development of sites like MySpace, Facebook and Twitter, there is not any question that there’s value in the huge amounts of information about individuals that these platforms are able to accumulate; however, there has been no obvious monetization strategy beyond earning advertising revenue. Arguments have been raised concerning the value of those firms; some might say while other claims that the value of the databases is sufficient to justify dollar price tags that their valuations are artificial and inflated.
More recently social networking has spawned a new value proposition that is the company applicability of the huge user-bases these social networks have generated. It may be said that usefulness is held by media for companies searching for a way take part in communications and to reach out to clients. It has not been done from advertising, a marketing or public relations standpoint, and has given rise to a new business model: The social networking Firm. This brings forth the debate of whether the social networking Firm is a fantastic investment. Is the social networking Firm a fad that will die out in the next several years, or is that a sustainable business that wills one-day drive obsolescence promotion and public relations?
Given the state of the present financing sources, Venture Capital and Market have been maintaining their portfolio bucks reserving investment to companies with growth potential earnings streams and an adequate working history. Does the Social Networking Company fall into this category? My answer is yes. The main point is. Social media is now a staple of younger generations’ lives, and also new media’s fastest adopters are individuals over age 30. Considering that the recognition of the company potential that networks retains Fortune 500 companies are currently devoting a part of their advertising budgets to media campaigns and social networks. Pepsi has given Million of the advertising budget for a networking program and firms are starting to follow suit. Obviously, the potential for Your New Media Company is substantial.