Social Media


Invest in companies that enable the world to connect and engage. The Vue includes the companies that have us glued to our smartphones such as Facebook, Twitter, and Google.

2.3 billion people are active social media users

In 2015 social media users increased by 176 million

Internet users have an average of 5.54 social media accounts

Facebook and WhatsApp handle 60 billion messages daily

The social media landscape evolves rapidly with changing consumer needs and perceptions. There was a time when Orkut and MySpace were pioneers in social media. But they are nowhere to be seen today – both lost their way and alienated their loyal customers in their efforts to monetise their platform.

Social media is generally considered a “Winner takes all” market and we are likely to see current market leaders consolidate their positions through acquisitions. Facebook (FB-US) acquired Instagram and WhatsApp. Companies acquire targets for more than just growing their user base. Google (GOOGL-US) acquired Polar (social polling software), Twitter acquired Periscope (live video streaming app) and Whetlab (Artificial intelligence). Companies are trying to make their networks “stickier” by providing more value added services.

The revenue models of social media companies are also more clearly defined now – with increasing potential for advertising revenue. Corporates are allocating a growing share of their advertising budget to social media, away from TV, radio and print.

These companies are sitting on a veritable gold mine of user data, with incredible insights into the habits and preferences of users. This is invaluable for social media companies, as they focus on improving their product and exploring more ways of monetising this data.

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