Expanding networks: Enormous growth will continue as sites find ways to monetize

The Social Networking Websites industry is dominated by Facebook, LinkedIn and Twitter. Industry companies operate in a rapidly innovating, emerging field that is subject to significant investment and technological change. Key elements of competition include the size of a network's user base, innovative product features and integration with other websites. Major players also face competition from newly funded startups and new products from existing internet leaders (e.g. Google and Microsoft)...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Growing advertising spending and disposable income will benefit the industry
  • Industry operators have increased efforts aimed at stopping the spread of fake news
  • The rising number of mobile internet connections will continue to support industry growth
  • Industry Report - Industry Key Buyers Chapter

    The Social Networking Sites industry is extremely concentrated; the top three players in the industry, Facebook, Twitter and LinkedIn, generate 89.3% of total revenue in 2017. Facebook alone will generate an estimated 72.3% of revenue in 2017. While other companies, such as Pinterest, have a significant user base and well-known operations, none generate revenue near the scale of Facebook. Facebook was an early entrant in this industry and consequently, has acquired a massive user base, which attracts advertisers. Additionally, companies can reach out to targeted demographics and track campaigns using Facebook, which improves their rate of return for advertising expenditures. Smaller social networking sites are usually more specialized and focus on a certain markets or actions. For...purchase to read more.

    Additional Insights for the Social Networking Sites Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Social Networking Sites Industry are

  • Developing a symbiotic relationship with the Advertising industry
  • Access to a highly skilled workforce
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Percentage of services conducted online and Total advertising expenditure in the Social Networking Sites industry impact industry performance..

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    What's in this report

    What is the Social Networking Sites Industry?

    This industry includes social networking website publishers and developers. The industry does not include companies that predominantly develop blogs, games, internet content, messaging services, online dating websites, online recruitment websites, online forums or online videos.

    Industry Products
  • Photos and short video social networks
  • Professional social networks
  • General social networks
  • Other social networks
  • Interest based social networks
  • Industry Activities
  • Communication services
  • Professional services
  • Specialty services
  • Entertainment services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Percentage of services conducted online
  • Total advertising expenditure
  • Number of mobile internet connections
  • Per capita disposable income

  • Current Performance
  • Monetizing social networking sites
  • Industry landscape and profit
  • Fake news and new opportunities
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry landscape
  • Entering a niche
  • Acquisitions and product diversification
  • Table: Social Networking Sites Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Social Networking Sites Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Telecommunications Resellers
  • Finance and Insurance
  • Consumers

  • Key Selling Industries
  • Consumers
  • Data Processing & Hosting Services
  • Telecommunication Networking Equipment Manufacturing

  • Products & Services
  • General social networks
  • Photos and short video social networks
  • Interest based social networks
  • Professional social networks
  • Other social networks
  • Chart: Social Networking Sites Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 30 to 49
  • People aged 13 to 29
  • People aged 50 to 64
  • People aged 65 and over
  • Chart: Major Market Segmentation for the Social Networking Sites Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchase costs
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Social Networking Sites

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Social Networking Sites Industry

  • Industry Globalization
    Facebook, LinkedIn Corp., Twitter,
  • Table: Facebook - financial performance
  • Table: LinkedIn Corp. - financial performance
  • Table: Twitter - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Social Networking Sites Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Social Networking Sites Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total advertising expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A business program for startups focused around growing the company. Accelerators also normally invest in startups in the program.
  • Microblog
  • A blogging service that differs from traditional blogging formats in that it only allows its users to share a limited piece of text, link or video.
  • Social Networking Sites
  • Web-based services that enable individuals to construct a public or semi-public profile, access a list of other users with whom they share a connection, and peruse their list of connections.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Social Networking Sites can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Social Networking Sites:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Social Networking Sites market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Social Networking Sites, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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