The Next Billion-Dollar Consumer Startup: The Rise of Vertical Social Networks and the Importance of Social Reading

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Jul 23, 2023
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The Next Billion-Dollar Consumer Startup: The Rise of Vertical Social Networks and the Importance of Social Reading
In today's digital landscape, where swiping and liking static content has become tiresome, there is a growing demand for more curated and meaningful connections. Users are seeking digital experiences that align with their online and offline interests. This is where vertical social networks come into play. These platforms enable users to share content that they can't post elsewhere, providing a unique and valuable space for individuals to connect and engage with like-minded individuals.
While some platforms may not be the first or only place to post certain types of content, they can still succeed by offering the best tools and features. Take LinkedIn, Clubhouse, and Quora, for example. These platforms enhance users' status within their existing network, giving them a way to showcase their expertise and build a following. This incentive to join a new network, whether personally or professionally, is a strong motivator for users.
Vertical social networks also act as a "System of Record," holding all the important data related to users' profiles and interactions within the community. This encourages frequent engagement on the platform and makes it harder for users to churn. By providing a comprehensive and tailored experience, vertical social networks create a sense of belonging and importance for their users.
The introduction of new devices often expands the amount of time and the ways in which we can be "present" on social products. This presents an opportunity for new networks to emerge. New devices or advancements in functionality can enable the creation of new types of content, which can be the catalyst for the launch of a new social network. Just look at the success of Snap and its AR filters, which played a significant role in expanding its user base beyond high school students.
Similarly, YouTube, as a platform that serves all types of content, presents an opportunity for "unbundling." By building products with killer features for specific categories, vertical social networks can offer a more tailored and focused experience. This specialization allows users to connect with others who share their specific interests, creating a more engaging and immersive social experience.
While vertical social networks are thriving, it's essential not to overlook the importance of social reading. Social reading involves sharing what one has read with others and receiving feedback on thoughts and ideas. It has been found to enhance the memorability of books and foster better idea formation and explanation compared to solitary reading.
Traditional book clubs have long been popular due to the social interaction they provide. The ability to connect with like-minded individuals over a shared interest in literature is a significant motivator for many participants. However, online book clubs have their drawbacks, with membership often being unpredictable and less interactive.
The rise of e-readers, such as the Kindle, has opened up new possibilities for social reading. Features like "popular highlights" allow readers to see which passages have resonated with others, creating a sense of community and shared experience. Additionally, the introduction of a lending function enables readers to share books with friends, further promoting social interaction and engagement.
However, it's important to note that physical books still hold a special place in our hearts. The tactile experience and personal connection they provide cannot be replicated by e-books. The nostalgia and sentimentality associated with physical books are elements that e-readers and online reading communities struggle to capture.
In conclusion, the next billion-dollar consumer startup is likely to be a vertical social network that caters to users' specific interests and provides a curated and meaningful experience. These networks offer unique opportunities for users to connect, share content, and enhance their status within their online communities. Additionally, the importance of social reading should not be underestimated. The ability to share thoughts and ideas about books fosters better idea formation and explanation, creating a richer reading experience.
Actionable advice:
- 1. If you're considering launching a startup, explore the potential of a vertical social network that caters to a specific niche or interest. By providing a tailored experience and unique tools, you can attract a dedicated user base.
- 2. Incorporate social reading features into your platform to foster engagement and community. Allow users to share their thoughts on books, highlight passages, and connect with other readers who share similar interests.
- 3. Don't underestimate the power of physical books. While e-readers offer convenience and digital features, the sentimental value and physical connection associated with physical books are still highly valued by many readers. Consider ways to bridge the gap between digital and physical reading experiences to appeal to a broader audience.
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