Social Media & the Shift Towards Diverse Monetization Strategies

Social media platforms are under tremendous pressure to generate revenue. This article by Greg Castro, VP Of Global Partnerships, Mobvista, explores the challenges social media giants face, the need to adapt, and how this adaptation may look.

In the face of increasing competition and a slowing ad market, social media platforms, particularly giants like Twitter and Meta, are under pressure to explore new avenues for revenue generation. While newer social media platforms like Threads initially experienced a surge in user growth, retaining these users has proven to be a significant challenge. This could be attributed to their inability to cultivate a distinct platform culture or perhaps due to the initial curiosity surrounding the app dissipating over time. Regardless, almost all established platforms grapple with a need for diversification and innovation in their monetization strategies.

Twitter’s Revenue-Driven Innovations

Like many of its peers, Twitter is now navigating a business landscape where survival relies not only on innovative advertising but also on the introduction of and introducing features that can fuel retention and monetization. For instance, to retain its most influential users, Twitter (recently rebranded as X) launched an initiative to share a portion of the ad revenue generated from user replies with the content creators. This strategic move led to the official launch of X’s Ads Revenue Sharing platform. While not new amongst its social media peers, this model of compensation not only strengthens the bond between the platform and its influential users and fosters a community of enthusiastic content creators.

Threads: Missing the Cultural Mark

Contrarily, Threads, the new entrant in the world of social media, starkly lacked a unique culture on its platform. Unlike Twitter (X) or other popular social apps like TikTok, Threads failed to introduce innovative features or concepts for users to build a distinctive culture. However, the underperformance of Threads should not be seen as a victory for X or other social media platforms. The competition extends beyond these new entrants, with social media channels increasingly locking horns over attracting advertising interest.

See More: 5 Tips To Make Your Meme Go Viral

The Super-App Vision

Elon Musk’s vision for X is inextricably linked to diversification, principally illustrated by his aspirations to launch a super-app. This model, successfully implemented by Tencent’s WeChat, amalgamates multiple digital services within a single platform, providing immense opportunities for mobile marketing and increased user engagement. Super-apps throughout Asia have seen their most notable success by including elements such as mini-games and mini-programs, creating robust social elements, and integrating payment and utility features. Musk’s previous experience with PayPal gives him, at the very least, an advantage over Western competitors, as he possesses distinct insights on integrating and optimizing payment systems within the super-app architecture.

WeChat, China’s premier super app, boasts a staggering 1.01 billion monthly active users. It has revolutionized mobile and social media in China, with 88%Opens a new window