The Future of Social Media: Trends, Strategies, and Benchmarks

The Future of Social Media: Trends, Strategies, and Benchmarks

Introduction:

Social media has become an integral part of our lives, with millions of users engaging on various platforms every day. However, as the landscape evolves, new trends, strategies, and benchmarks emerge, shaping the future of social media. In this article, we will explore the next wave of social media, the strategies employed by upstarts, and how to benchmark the success of a social app.

The Next Wave of Social Media:

In recent years, the losses to scams and fraud on social media have increased by 70%. Businesses often realize they have a fraud problem when verified users scam them. To combat this, startups are looking for alternatives to the traditional model of monetizing through advertising. They are focusing on close friends, counterpositioning on ethical or political grounds, moving beyond advertising, and finding the next great use case.

Building a Network for Close Ties:

Startups like Locket, Gas, Slay, Sendit, NGL, and nocapp are shifting their focus from building media machines to creating networks for close ties. These platforms allow users to connect with friends on a more personal level, bypassing the noise of traditional social media. Mastodon, a non-profit platform, has even attracted millions of users who believe Twitter has an agenda of leftist censorship.

Fragmentation and Worldviews:

The increasing fragmentation of social media may lead to users assembling on multiple platforms, each catering to a different worldview. Gas, for example, has generated $7 million in revenue by offering a subscription called "God Mode," which allows users to see who voted for them in different polls. Yubo, a live-streaming network, expects to generate $20 million in revenue by 2023 through its subscription product. These platforms demonstrate the potential for social networks to act as gateways to e-commerce.

Winning the Next Great Use Case:

Social media upstarts are constantly striving to find the next great use case that will set them apart. Immersive worlds, such as those found in Minecraft and Roblox, are seen as a natural progression for social media. These platforms have already shown the power of running in-world economies, monetizing through avatar accessories, game upgrades, and special experiences. The investments in virtual reality (VR) and augmented reality (AR) will come down to how these immersive worlds manifest for the mainstream.

Benchmarking Social App Success:

Assessing the performance and potential of a social app requires a scientific approach. Benchmarking key metrics can help determine whether an app will plateau at a few thousand users or achieve mainstream success.

1. Define Your Core Metric:

For most consumer social apps, the core metric is daily active users (DAUs). The trend should show consistent growth, indicating that users are actively engaging with the app on a daily basis. Monthly user growth can be benchmarked at 20% for ok, 35% for good, and 50% for great performance.

2. Assess Engagement Ratios:

Engagement ratios, such as DAU/MAU (daily active users divided by monthly active users), indicate how regularly users are incorporating the app into their lives. A ratio of 25% is considered ok, 40% is good, and 50% or more is great.

3. Retention and Long-Term Engagement:

Retention is crucial for the long-term success of a social app. N-day retention, which measures the percentage of users who continue to engage with the app after a certain number of days, is an important metric. Benchmarks for d1 (day 1), d7 (day 7), and d30 (day 30) retention are 50%, 35%, and 20% for ok, 60%, 40%, and 25% for good, and 70%, 50%, and 30% for great performance. It is also important to analyze the flattening of the retention curve between d7 and d14 and identify any significant degradation between d7 and d30.

Conclusion:

As social media continues to evolve, startups are exploring new strategies to create meaningful connections, monetize without relying solely on advertising, and find the next great use case. Benchmarking the success of a social app requires analyzing key metrics such as daily active users, engagement ratios, and retention. By understanding these trends, strategies, and benchmarks, social media entrepreneurs can navigate the ever-changing landscape and build successful platforms for the future.

Actionable Advice:

1. Focus on building a network for close ties: Emphasize personal connections over mass media to create a more meaningful user experience.
2. Explore alternative revenue models: Look beyond traditional advertising and consider subscriptions, e-commerce integration, and in-world economies to monetize your social app.
3. Stay ahead of the curve: Keep an eye on emerging trends such as immersive worlds, virtual reality, and augmented reality, and be prepared to adapt your platform accordingly.

Note: The content has been restructured, connected, and expanded to create a coherent long-form article.