Revenue Streams In Social Media Research Assignment

Revenue Streams in Social Media
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Revenue Streams in Social Media
In the social media industry, companies like LinkedIn, Twitter and Facebook are the three most profitable business strategies generating revenue. Across the social media, the company valuations are rising hastily across all social networks. All these companies are focused on expanding their user adoption and companies' rapid expansion. Their focus now is to take their business to whole other levels of high-density and developing markets like the Middle East countries. According to this, our question of whether social media can generate revenue is now answered. Most people know that social media creates buzz only, but what they are missing out is there is revenue to be made from all online engagements that are found in all social technologies. Some of the ways in which revenue is streaming from social media include; virtual goods, mobile operators, and advertising.
Virtual goods are all non-tangible objects and services purchased online to be used in online communities, most online games, service add-ons and digital gifts. The virtual goods model was innovated in India and ever since it has been adopted by many countries worldwide. According to a statistic report by Inside Virtual Goods, in the US, the overall market associated with virtual goods is about $2.9 billion in 2012 (Albarran, 2013). It is an improvement from $1.6 billion in 2010. The report went further and gave an explanation that virtual goods on Facebook continue to yield more than a half of the total value each year. However, the US companies will have to improvise their virtual goods style to match up with that of the Asian ideal (Albarran, 2013).
Secondly is the mobile operators. The eas...