Given the large number of sub-markets (and this listing is by no means exhaustive),
we can conclude that in terms of market structure, the various sub-markets within
the social media industries are for the most part competitive in that there are
multiple firms involved in every sub-market, although the sizes of the firms differ
greatly in terms of their market share, as measured just by the number of users/
subscribers/accounts in force.
Facebook is the classic example; reaching over 900 million people in 2012,
Facebook is easily the largest social networking site in the world. Other SNS like
Myspace, Livejoumal, and Orkut pale in comparison to visitors to Facebook. Most
of these sub-markets reveal a hybrid-type structure, with an oligopoly found on
one end evidenced by a small number of firms leading the sector, and a set of
smaller firms vying for the remaining market share. However, if we have learned
anything about the emerging social media industries to date it is that trends can
change almost overnight, as evidenced by the rapid growth of Pinterest and
Groupon, to offer just two examples.
Another distinction we note about the social media industries is that the term
"price" only applies at this initial examination of the market for advertisers. The
majority of the social media sites listed previously are available for free to
consumers, so price is not a consideration. The price to advertise-largely based
in social media on audience impressions-varies based on usage and the number
of consumers who have formed profiles or accounts, whatever the case. Facebook,
Linkedln, and YouTube can charge more for advertising than comparable sites
based on the sheer scale of available audience advertisers have the potential to
reach. In economic terms, their available supply of potential audience increases the
demand by advertisers.