Social Media Industry, has not only grown manifolds in the last few years, it has also radically changed the way people connect, share & shop. In almost all top 10 major global economies, traffic on Social Networking sites, Blogs & File sharing platforms account to two third of Active Internet Users.
Some popular studies of 2011 show that the number of adult internet users that use social networking sites has grown more than double since 2008 & with simplified internet usage on mobile phones, this number is growing every day. Almost all major players have launched their mobile apps for this purpose with full support of the phone manufacturing companies. The user whether on PC, Tablet or a smart phone can instantly connect to such platforms, which come with a simplified user inter-face. As a logical output all businesses too are also participating in Social Media Platforms to engage directly with the customers for enhanced product education &to increase their market share. A heavy majority of Fortune 100 companies & Top Asian Companies are increasing their Digital Advertisement budgets resulting in major rise in the revenues for the Social Media Companies, thus making sense for any sound investor to invest in the Social Media Companies which are most decidedly a future Gold Mine.
Major social media giants like Linkedin, Google are already listed in Nasdaq fuelling their aggressive expansion plans & many others are in process or planning to launch their own IPO’s. Recent success of Facebook IPO is known to all & investors are now keen to invest in Social Media Company IPOs& the existing players, simply for the wealth creation opportunity that they offer.
The Social Media Exchange Traded Funds provide sound investment opportunity as their holdings/ fund allocations includes companies from across the globe providing social networking, file sharing & other web based media applications& most of them rather growing at rapid speeds.
Linked in for instance has now a user base of more than 100 million users with close to 41 million in US alone. It’s user-base, which is now spread across 200 countries is a clear indicator of it’s expansive future growth, The growth rates of notable platforms like twitter & facebook has not only created some young billionaires, but also shows no sign of slowing down, atleast in the near future as the emerging economies like Brazil & India are just warming up to the phenomenon & their internet user base is poised to grow steadily for coming years.
As a new advertisement avenue social media promises maximum penetration for Businesses, alongside giving consumers, the maximum choices in a most convenient way. No doubt that this growth explosion is multiplying the revenues of these companies & Investors today stand to gain massively by investing in Social Media companies.
Other than the individual listed corporations, investing your hard earned money in the Social Media ETFs is surely a more systematic way to procure good returns, simply for the wider exposure that they offer. The standardised returns due to spread out portfolio also aids in reducing speculative risks .Like Equity, the social media ETFs can be bought & sold through all major exchanges of the world during the exchange business hours & will provide investment results that is reflected & tracked through the Solactive Social Media Index.
However, investing in Social Media Companies, IPOs, Equity Markets, ETFs comes with its own share of risks, which one can easily overcome through systematic investments & professional advice, hence before investing discuss thoroughly with your Finance Advisor & start with small investments over a period of time, preferably with a 5-7 year investment horizon.
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