Location-Based Social Networking to Generate $3.3 Billion by 2013?
According to a rather speculative report by research firm ABI Research, location-based social networks like Brightkite, GyPSii, Pelago and Loopt could reach revenues as high as $3.3 billion by 2013. The report, however, also warns that the business models might differ from what most analysts are expecting today. According to ABI research, most of these networks will make their money from licensing and revenue-sharing with network providers or handset manufacturers.
Nokia, for example, acquired Plazes a month ago, while GyPSii has deals in place with Garmin and Samsung. Loopt, too, has partnered with virtually all the major US mobile carriers.
Still Limited
While we have little doubt that mobile social networking will become a big market in the future, today's reality is still rather bleak. Because of the limitations in the current hardware and software implementations, a lot of the location-based social networks like Loopt, WhosHere, Pelago's Whrrl, and others feel limited and at times rather gimmicky.
Also, most of these networks simply suffer from the fact that they don't have many users and that the chances of finding any of your friends on them are relatively low for now.
What About the Established Networks?
In the near future, mobile social networking is only really going to grow once the big social networks like Facebook, MySpace, Orkut, LinkedIn, or MyYearBook start releasing location-aware applications for mobile devices.
Overall, we don't put too much stock into the ABI report. Thanks to highly targeted location-based advertising, there is a good chance that a mobile social network that manages to attract enough users (or any of the already establish social networks that releases a location aware application) will be able to be financially successful. For right now, however, with a market that is barely establish, trying to put a number on the potential success of these networks is almost silly.
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It makes sense. While it's great to connect with people half-way around the world, why not meet more people in your own area, who you share similar interests with, and could possibly explore more in these interests with. I'd put my money of location-based social networking, for sure.
Rather than predict the amount of money in this market, I think it's probably just safe to say that we're all REALLY excited about something that we're pretty sure will exist, but we're not sure what. 3.3 billion exclamation points is more like it. I can sure say that I'm excited about this... even though the existing services are, you're right, a bit too gimmicky even for an early adopter like me to use. How many times will I check in on Loopt or Whrrl when there are only one or two other friends using it?
If you’re not already a believer in social media marketing it’s time to get on board. Those that established themselves over the next year will be in a better position than those that are still sitting on the fence. Hopefully this article turns on the green light that social media is real and it will have a greater impact on our lives within just a few years.
social networks who build themselves around location may look good now, but once facebook, myspace or any other large network, build-in location awareness it will be pretty much game over. The hard part is attracting the users, not implementing the location awareness.
Oh Cool Man!
Facebook is just dominating the web!
I believe we are on the Social networking Era!
Another social networking site www.shonod.org is booming , currently its targeting the Bangladesh and soon will go globally. If any one interested to find place in bangladesh , can visit www.shonod.org
I think for mobile social networking to be successful, it has to properly address user needs one of which is that it should work on my friend's phone as well. I've covered this in my post "Understanding âUser Needsâ a Mobile Social Network can satisfy"
http://sachendra.wordpress.com/2008/08/14/understanding-user-needs-a-mobile-social-network-can-satisfy/