At a glance, it would be easy to assume that social networking giants, Facebook and Twitter, are in direct competition.. If we look to the companies’ pasts, both experienced quick growth to dominate the social media industry and both have had a strong history of acquisition, purchasing start-up companies for knowledge and talent and absorbing this under the main brand. When acquiring companies, they share similar interests – mobile, image/video based social networks and advertising. Given these similarities, it would be easy to view both companies in the same way, however, at the very core, they are extremely different. Facebook is a network built around social ties with an expectation to share within a closed social group while Twitter, by definition, is public. So is it right to say there’s a case of Facebook vs Twitter? It has been said that looking at the past is the best way to predict the future. With this in mind, what can the past acquisitions of Facebook and Twitter tell us about the direction of the companies in the future?
Facebook has a history of acquiring companies, shutting them down and absorbing them under the Facebook brand, however in recent times this has been changing. Of the four most recent acquisitions, three of them will continue to operate independently Whatsapp, Oculus VR and ProtogeoOy. This change in strategy could be the first clue to the “unbranding” of Facebook. Even Mark Zuckerberg has admitted that Facebook as a brand is no longer “cool” and, in 2013, spoke of how he visualised Facebook becoming a ubiquitous utility like electricity. The unbranding isn’t exclusive to newly acquired companies, Facebook appears to be splitting out the facilities of the network – e.g. the introduction of a standalone messenger app earlier this year – in order to focus on functionality and the provision of essential services. Taking all of this into account, the future of Facebook could be as a huge social media conglomerate. In years to come, thousands of people could depend on Facebook for everyday services and not even realise it.
While Facebook appears to be concentrating on the provision of services, Twitter is more focused on the provision of information, in real time. Given the innately public, instant nature of Twitter, it is already on course for a future as a social newswire. It has been widely recognised that Twitter is the key source for breaking news. The company continues to encourage real-time engagement through media partnerships and event-focused special features e.g. hashflags for the World Cup. However if Twitter is to become a newswire, sustained revenue generation will be vital. Many of Twitter’s recent acquisitions – four this year alone - have been in the area of mobile and ecommerce and this continues to develop, with the appearance of a “Buy Now” button earlier this year for in-network purchasing and revenue generation. This, coupled with the investments Twitter is making in the area of Social TV data, means that Twitter will have the revenue to support a platform for breaking news.
There will always be an element of competition between Facebook and Twitter, as both surge to be the “It” platform, and comparisons will always be drawn between the two. However, it is clear that both companies are taking different directions. While Facebook is beginning to unbrand and unbundle services to increase its reach and become a social media conglomerate, Twitter is, more and more, drawing people in to engage and interact publicly and use the platform as a social newswire. Regardless of the differences though, one common quality is plain to see – although the look and feel may change, both Facebook and Twitter are here to stay.
By Roseanna Ellis.
PrivSec Conferences will bring together leading speakers and experts from privacy and security to deliver compelling content via solo presentations, panel discussions, debates, roundtables and workshops.
For more information on upcoming events, visit the website.
comments powered by Disqus