I read a very interesting article in the New York Timesrecently regarding the future of social networking. The article argues that social networking has perhaps gone too far at this point, and is overextended into too many different networks and sites with the same concept. Listed as the poster child for the overextension of social networking is the recent launch of HoffSpace, a social networking site specifically for fans of David Hasselhoff. No, I am not making this up.
The new king of social networking?
While I will agree with the article in regards to the future demise of HoffSpace and other ill concieved social network sites, I do not think that big social networking sites are due for a decline. I believe that MySpace and Facebook will continue to grow significantly over time as computer savvy Generation X and Generation Y age and are replaced by subsequent generations. Today’s kids have grown up on social networking—it will stay with them for their entire lives.
Still, the larger question in regards to Facebook and MySpace’s viability is how will these companies build upon their social success to become financially successful. With the current credit crisis and financial meltdown, I think that these sites are going to be in for a lot of changes. Investors are going to look for social networking sites to start to produce revenue and become financially sufficient. So, therefore, my prediction is that over the next few months you will see a lot of increases in advertising and marketing activity on social networking sites as they attempt to adjust their operations to a model that makes money.
I think that this change in operations strategy will breath new life into social networking. In sites like Facebook there is a tremendous audience and a real potential to reach people where they play and socialize daily. If the credit crunch forces Facebook to open the site for more advertising activity, marketers would rejoice—they would have an excellent tool to reach their audience. I think that opening up the sites to more advertising is in the long term financial best interests for social networking sites.
As for HoffSpace, sadly, I would say the future is bleak. There are no amount of changes that are going to make that work.
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