950 Million Users Will Access Social Networking Sites via Mobile Devices, says Pyramid Research

Mobility is set to play an important role in social networking. As social networking goes mobile, social networking sites (SNS) could play an important role in mobile operator strategies for increasing mobile data usage, according to Pyramid Research.

Today's active social networking members represent more than one-third of the total worldwide Internet user base, for a figure of 530 million members worldwide. Looking ahead, Pyramid Research expects social networking sites (SNS) to gain prominence as sites add increased functionality and more people are introduced to them by friends and acquaintances. By the end of 2012, there will be 950 million users accessing social networking sites via their mobile devices.

As social networking develops as an industry, mobility will play a vital role in shaping the future. There are strong forces bringing SNS and mobility together including the industry-wide trend toward presence and personalization. For social networking sites, the ability of members to access the sites from anywhere will enhance the utility of the sites and thus the advertising revenue that the sites can generate.

For mobile operators, SNS could greatly increase mobile data usage, which has so far been lackluster in most markets, and open the door to new revenue streams from subscription fees or advertising. To that end, a broad range of handset suppliers, network equipment providers, and software developers have been making progress in addressing technical obstacles to mobile social networking -- such as the need for bandwidth, devices and browsers.

About this study

Pyramid Research's report, "Social Networking Goes Mobile" (February 2008), examines the social networking business model and analyzes its future, including forecasting the number of social networking members expected globally by 2012. In addition, this report assesses the current and future state of mobile social networking, whereby members access their favourite sites using their mobile device. In particular we analyze the rationale for both stakeholder groups -- the social networking sites and the mobile operators -- for collaboration in offering mobile social networking services, including the potential revenues mobile operators can gain from adding social networking to their offerings.