Consolidation Factors

by Jay Deragon on 10/03/2007

consolidation factorsMySpace, Facebook, Linkedin, Orkut, Friendster, Mashable, Twitter and the list of dominant social networks goes on representing hundreds of millions of users worldwide.   Then there is the proliferation of smaller networks either already established within their niche or just starting.

The growth of new members, as reported by each of the dominant networks is largely inflated by the “same” rather than “new” members who join multiple networks.  In others words many of use are on multiple networks.  Then consider the number of people registered in forums, i.e. Yahoo forums.  Yahoo maintains there are over 60 million different forums set up on numerous topics.  Then consider that there are over 50 million different blogs on the web and growing daily. Add mobile networking and blog capabilities and consider the growth of YouTube.

There are other forms of interactive communications between and amongst people to consider as well but by now the point should be obvious, an overload of communications and networking options for individuals globally. In previous post i.e. Time Factors, Purpose Factors, Attention Factors, Link Factors, Attraction Factors, Identity Factors, Motivation Factors, Technology Factors etc etc, we’ve been examining the critical issues of this emerging “connected” market and how and what it will emerge into for the benefit of the users.

The collective factors clearly point to the need for the market to begin to consolidate for the purposes of effectiveness and efficiency for all user constituencies involved currently and in the future.

Convergence is likely to happen in numerous forms and fronts.

Technology is already converging within the social networking markets.  Functions and features are becoming duplicative across networks with a few leading on the fringe by introducing convergence of advanced media functions and features.  User migration is likely to consolidate around three “networking areas of interest”.

When you examine the forums, blogs and existing networks you can see a possible affinity in three areas: topics of interest, geography and industry.  Further segmentation of user interest could also be divided between personal and professional affinities however much of the same activity crosses over between the two.

Aggregation of user centric activities and interest can be consolidated into “Mega Networks” than come from consolidation there will always be a need for smaller niche networks severing specific market segments but said networks could easily become a branch of an aggregators main site simply through the categorization of “network links” by topic, geography and industry.The question of consolidation is not if but when.

The shape of consolidation could come in many forms but the overriding purpose will still be aimed at increased value propositions for effectiveness and efficiency across all user segments.  When the consolidation begins the value of the networks will increase and the valuations of the consolidated “mesh” will set a stock market on fire.

What say you?

{ 1 comment }

andar909 August 10, 2008 at 10:49 pm

hi, andar here, i just read your post. i like very much. agree to you, sir.

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