Data is most useful social media asset, says expert

In order to create a new revenue stream, social media websites may need to sell data, according to an industry expert.

The most valuable asset that social media sites possess is data about emerging trends, an industry expert has suggested.

Leon Benjamin, a Web 2.0 practitioner, made his remarks following comments by Dadooda founder Neil Stapley that social networking websites will need some sort of new revenue to ensure that they have sustainable business models.

Mr Benjamin claimed that it is generally accepted that one way that companies such as Twitter can make money is to sell the data that it generates.

"The reason why it's important is that it can tell brands, governments, other organisations, about trends and patterns which are emerging in real time," he explained.

It is not just useful for making people aware of products, it can be useful politically too, claimed Mr Benjamin.

He highlighted the reported use of Twitter in Iran as an example of this.

Last month, Twitter received a new set of funding from six companies including Morgan Stanley, Insight Venture Partners and Spark Capital.

07/10/2009