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A Comparative Analysis of Online Social Networking Sites and Their Business Models
Abstract
In the world of e-marketing, new business models are introduced to accommodate changes caused by various factors, including the markets, the services, the customers, among others. One latest trend of e-marketing is social networking Web sites, many of which have attracted not only large number of users and visitors, but also business companies to place their online ads on the sites. As an important example of Web 2.0 applications, online social networks deserve comprehensive studying and analysis; they are not only employed as an effective vehicle of e-marketing, but may impact how future Web-based applications would be developed. In this chapter, we explore online social networking as a new trend of e-marketing, by conducting a comparative analysis of online social networking sites. We first discuss the various types of online social networks, based on the classification by Laudon & Traver (2008), and then analyze online social networks from a business strategy point of view, by discussing the primary revenue models for online social networking sites. The primary contribution of this chapter is a comparative analysis and discussions of representative online social networking sites and their respective revenue model(s). This chapter aims to provide the reader with a basic understanding of the emerging online social networking Web sites and their primary revenue models.
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