Mobile Social Media Services

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1 Mobile Social Media Services T Technology Management in the Telecommunications Industry Olli Mäkinen Doctoral Student Aalto University School of Science 15 th November 2011

2 Topics Social media services Related theories Mobile terminal features Mobile platforms Mobile social media services Social media services business models Case examples

3 Social media services Based on interaction between users (vs. traditional user and service provider interaction) Often include user created content Feature contact/friend lists Users can usually form groups based on e.g. similar interests Examples include Facebook, Google+ and Flickr Social networking services is an interchangeable term

4 Social media services

5 Related theories Network economics The value of a network-based service depends on the amount of users = N^2 (Metcalfe s law) Reed s law states that Metcalfe s law is understating the fact that a network can hold multiple subgroups inside it Robin Dunbar has instead stated that the human brain can only manage around 150 social contacts reliably (known as Dunbar s number), which limits the value to a certain extent Diffusion of innovations Technology acceptance models

6 Mobile terminal features Main feature: always with the user Internet connectivity Media recording GPS

7 Mobile platforms The mobile platform SDK is used to access terminal features Mobile HTML5 is predicted to unite the platforms together somewhere in the future Push notifications (Android, ios) allow a mobile social media service to receive notifications without the app running

8 Mobile platforms 70.0 % 60.0 % 50.0 % 40.0 % 30.0 % 20.0 % 10.0 % 0.0 % Source: Gartner 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 Nokia Blackberry Apple Android Others

9 Mobile social media services Mobile social networking extends the concept of desktop WWW social networking to a mobile phone The primary added value to the user is being able to be in contact with a social network at all times Being in contact can take different forms Media upload Text messaging Status updates Locating friends Sharing items, for instance coupons or tips

10 Social media services business models The primary revenue source for WWW-based social media services is advertising Until now, mobile advertising has not really taken off Use context in mobile use is different Gartner is still predicting that the mobile advertising market will skyrocket Location-based ads providing highest profits Different models available Revenue sharing with network operators or device manufacturers

11 Example: Nokia N9 social contact book A social contact book integrates multiple different social media service accounts into one contact Presence information is shown Google Talk, Skype etc. supported Revenue model: device differentiation by manufacturer

12 Example: Facebook Mobile Facebook s mobile extension 350 million users according to Facebook Used to be very sparse in features, now has location checkins added Native clients for many platforms Revenue model: desktop-based Facebook ad supported

13 Example: Facebook Messenger Facebook Mobile s separate messaging app Replacing SMS and MMSes with additional location data Features group chatting possibilities Available for Android, Apple ios and BlackBerry Revenue model: desktop-based Facebook ad supported

14 Example: Google+ Messenger Google+ s mobile messaging and picture sending app, previously known as Huddle Features group chatting possibilities Revenue model: desktop-based Google search supported

15 Example: Foursquare Built from scratch for mobile use Own social network, but suggests friends from Facebook Based on check-ins into different venues Game features with points for check-ins Revenue model: businesses can co-operate with foursquare to provide check-in specials

16 Summary Two players dominate the western social media service landscape In Russia, vkontakte.ru is used more Similar situation in China Market entry is difficult

17 Questions?

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