How Do Social Media Sites Make Their Money [Infographic]

Chances are if you’re reading this, you’re a regular user of social media sites and you’re quite familiar with a wide number of sites. Yet beyond the well publicised attempts of Facebook, have you ever wondered exactly how these sites generate revenue? Well have created an infographic depicting just that, taking into account the 30 most popular social media sites out of a potential 2,000 sites.

So along with the usual suspects, sites like Yelp, Foursquare, StumbleUpon, Vimeo, LinkedIn, Soundcloud and Tumblr are all included, and are represented by their respective advertising model. The Venn diagram used at the beginning just shows how varied each site’s business model is – almost half the sites featured are using two or more methods to generate revenue. For example, Foursquare and Twitter generate revenue solely from ads, yet Vimeo and Soundcloud use both ads and subscription services. Ultimately, the content and purpose of a site has a massive bearing on the business model adapted, showing that there is no such thing as a ‘one-size-fits-all’ model.

On top of that, it was found that roughly 77 per cent of social media sites derive significant revenue from ads and that 89 per cent view experimentation as a permanent feature of social media. The infograph is relatively sparse in detail, but considering how murky the entire topic of finances and business models in social media can be, a straighforward and simplified approach is probably the best way to tackle such a subject.

How Social Sites Make Money

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