When I think back about the various ‘bubbles’ that have burst in recent times there are quite a few similarities. If you look at the Tech Crash of 2001 and the GFC of 2008 the main characteristic that springs to mind is that people make an assumption that the rapid growth is ‘business as usual’. Having watched social media intently for the last five years or so it’s interesting to see the number of people who shunned it at first becoming advocates and very intensive users of Facebook, Twitter, LinkedIn and others.
Here is a link to a very good article by Morris Kaplan that raises some alarms about Social Media and whether we are getting ready for a new bubble to burst. With almost ten percent of the world’s population on Facebook the signs are that ‘something will happen’.
What will that something be? Will Facebook continue to grow at an alarming rate? Will there be consolidation among the major social networks such as Facebook and LinkedIn? Will there only be one social network in ten years time? What other major players will want a slice of this action?
I wonder whether we will still call it ‘Social Networking’ in ten years time? Just as the way we dropped the ‘e’ from e-commerce and e-business last decade, will social media become just media, or just networking?
One thing is certain. As Morris’ article mentions, social networks will continue to be a part of how we live, work and play.
UPDATE: Here is an interesting article from Business Insider that talks about JP Morgan’s Social Media Fund. Click on the links to ’13 glaring signs of a new bubble’. Very insightful.
- Facebook investor: I wouldn’t take LinkedIn public now (finance.fortune.cnn.com)
- Is this the year that the social media bubble bursts? (techvibes.com)
- What LinkedIn Users Must Know to Explore Facebook – Part 1 (rocktheworldbook.com)
- LinkedIn: A Small Player Tests the IPO Waters (dailyfinance.com)
- 2011 – The Year Social Media Bubble Will Eventually Burst (smedio.com)