We already posted one blog on Predictions for 2023 at the beginning of January this year, but we just can’t get anoutgh of them, so here are three more on the latest social media thoughts from US anayst Debra Aho Williamson.
1. BeReal will announce its first revenue model—but it won’t be based on ads 2022 was the year that BeReal entered the mainstream. Over a third of US teens are on BeReal just three years after its founding (and the UK shows similar trends), placing it ahead of Instagram when it was three years out and on par with Snapchat. But despite its rising popularity, BeReal still faces real competition from other social platforms. This will lead it to announce its first revenue model, which will be built upon premium features for users (and possibly for marketers). It wouldn’t be the first platform to turn to similar solutions.
“Many companies are struggling for ad revenue right now,” said our analyst Debra Aho Williamson. “And we’re seeing other social platforms similar to BeReal trying to think about other revenue models that relate to subscriptions or paying more to get views of certain things or extra features. So there’s some momentum behind this.”
2. Some social media subscriptions will die out Speaking of subscriptions, can they provide a substantial revenue stream for the bigger social platforms? Williamson has her doubts. Both Twitter and Snapchat are trying to get their subscription businesses off the ground, but they each have a long way to go before they see success. As users leave Twitter in droves, the social platform needs to figure out how to course correct before it can make up lost revenues via subscriptions. Meanwhile, the offerings on Snapchat+ are “interesting to users,” said Williamson, but she isn’t sure whether they’re compelling enough to keep them engaged and paying each month.
“I think we’re going to start seeing some interesting signals in the next few months about whether subscription fare is going to be enough for these companies to actually build a business outside of advertising,” she said. “It’s probably not going to work out for either of these companies.”
3. Meta will find an additional revenue stream in its messaging apps As Meta struggles with its advertising business, it will seek other ways to make money.
“I’m predicting that Meta will make a major announcement about monetizing WhatsApp and Facebook Messenger, not via advertising, but via charging businesses for various ways to connect with users,” said Williamson.