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An investigation of the financial business models adopted by social networking companies: a case study of Twitter Inc. - Dissertation Example

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An investigation of the financial business models adopted by social networking companies: a case study of Twitter Inc.

The researcher states that in an effort of tracing the history of social networks over internet, one would hardly miss the greatest invention of 20th century, computer, which was originally conceived as a device to comprehend complex mathematical problems but later reborn as a means of communication through internet. The World Wide Web is one of those services that use internet and through which social networking sites have proliferated in the new century. The first vague concepts of the social network can be traced back to 1997 where it was defined as a computer mediated network that connects people and organizations. Built on this basic concept, a decade later, Boyd and Ellison formally defined the social network as a web-based service that allows people to create a public or semi-public profile through a bounded system, and share, articulate and communicate with a list of other such users. In this period of 14 years, not only the concept of social networking has gained stronghold but it has also created a situation where the companies are valued in billions, where the Facebook is set to achieve around $7 billion in advertising revenues in 2012. Social networking sites (SNS) are defined as web based services which allows individual to construct public or a semi public profile, can articulate a list of users with whom the users shares a connection and at the same time view and traverse the list of connections. The socail networking world has few big names associated with it such as MySpace, Twitter, Facebook, Twitter to name a few. ...
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Summary

This research paper aims to conduct a comparative evaluation of Twitter’s current revenue model against others, already existing successful revenue models, with particular consideration given to advertising, revenue streams and expenditure…
Author : tkoss

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