THE PRACTITIONER

There are two camps of people in the world of social media: Those who can’t get enough and those who can’t wait for it to end. Where the first group sees limitless possibilities, the second sees a waste of time. What the two groups have in common, however, is a desire to be proven right once and for all.

What the argument often boils down to is the ability of a given social network to make money.

Inevitably, any discussion of social media becomes deadlocked over the monetization issue. Supporters typically argue that concerns over monetizing social media miss the point or that it is just a matter of time. Detractors often respond that an enterprise must generate revenue to be successful. Never the twain shall meet.

I admit, despite my enthusiasm for social media as a communications tool, if someone drew a line in the sand, I would line up on the side of those who believe the long term success of social media hinges on its ability to make money. That’s why the story about Twitter co-founder Biz Stone announcing plans to monetize the popular micro-blogging service caught my attention. Stone told a Bloomberg reporter about company plans to launch a Twitter analytics service in Q4 2009 for businesses seeking enhanced Twitter monitoring and metrics.

Social media is notoriously difficult to monetize. Just check out the difficulty Google has had trying to make YouTube profitable and you’ll see what I mean. But, Stone and Co. may have a workable business model on their hands. Anyone out there remember the Yellow Pages? Just like the phone companies sold space in the Yellow Pages, but charged nothing for residential listings, Twitter plans to subsidize private users while charging businesses for specialized access. My question is, will they buy it?

Steve is President of Wunderkind Public Relations. He regularly comments on public relations strategy, social media and trends impacting the communications industry. You can follow him on Twitter or connect with him on LinkedIn.