The Real Value of Social Networks
I study finance so it ought to be somewhat easy for me to valudate aka. Set a price on the value of the different social networks.
But apparently the are many unknowns factors, like always, the future is unknowns, but when also the income model is unknown it suddenly becomes a really big problem to put a value on a social network.
Users:
The more “users” a network has the more valuable it is, but how different companies define user varies a lot some companies just use the number of registered account and other active users with in a certain time interval.
But also the location of the user matters, the most valuable users are from large rich countries, the most valuable being from the USA as this is the groups that is easiest to sell “target ads” to, hence the values of each facebook’s Danish users, are no near the value of an American users value, even through we are the country in the world with the highest % of the population on facebook, over 34% of the Danish population is on facebook.
Techchrunch have tried to combine all the information we have about the large social networks, together with all the investors information the could find, from that information they made this circle diagram
Check out the full article @ Techcrunch.com
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