The Future of Social Media: Unbundling Advertising and Content Creation

The Future of Social Media: Unbundling Advertising and Content Creation

In the ever-evolving world of social media, becoming a reigning platform requires more than just being a "media" like YouTube. It requires becoming a platform where everyday people can contribute and share their content. But what happens when smartphones become a part of our eyewear, significantly lowering the barrier to capturing moments? With the potential widespread adoption of Apple's smart glasses, freeing us from the need to hold a smartphone while capturing moments, what comes next?

Initially, platforms like Instagram and TikTok will embrace videos that fill our field of view. This immersive experience of consuming full-screen videos asynchronously will pave the way for startups that specialize in synchronous (real-time) consumption experiences. The goal here is to become the king of the "SNS" (Social Networking Service) world rather than a traditional "media" like YouTube.

However, the traditional news industry faces an existential problem. The internet has unbundled advertising from content creation, creating new digital monopolies with millions of people generating free content. If we compare this to the pre-internet era, it would be akin to a newspaper shutting down its newsroom, retaining only the advertising department (with the help of robots), and publishing articles written by others. This shift has transformed how we consume news.

Today, my news consumption follows a power curve rather than a bell curve, thanks to the internet's influence. I am no longer limited by time and place when it comes to choosing what I read. The implication of this consumption pattern is that those who consistently appear in the top tier of the power curve—the best of the best—will dominate the zero-sum game for my attention. And, rightfully so, they will be rewarded for it.

The internet has dismantled the bell curve and introduced power laws that dominate our digital landscape. The challenge we face now is how to align our population distribution with internet economics. There is a fundamental misalignment that needs to be addressed.

To navigate this changing landscape successfully, here are three actionable pieces of advice:

1. Embrace User-Generated Content: As we move towards a future where everyday individuals can effortlessly capture and share moments, platforms must prioritize user-generated content. This will not only foster a sense of community but also tap into the vast pool of creative content creators.

2. Foster Real-Time Interaction: Startups aiming to become the kings of the SNS world should focus on creating synchronous experiences for users. Real-time interaction enhances engagement and allows for shared experiences, bringing people closer together in the digital realm.

3. Adapt to Power Laws: Recognize that the internet has shifted the dynamics of content consumption. Instead of aiming for a broad audience, focus on creating exceptional content that consistently appears at the top of the power curve. This will attract and retain the attention of users in an increasingly competitive landscape.

In conclusion, the future of social media lies in platforms that balance user-generated content, foster real-time interaction, and adapt to the power laws governing internet economics. As technology continues to evolve, it is crucial for platforms to stay ahead of the curve and embrace the changing dynamics of content creation and consumption. By doing so, they can position themselves as the reigning champions in the highly competitive world of social networking services.