Big Growth for Social Networking App Market

In 2006 the social networking application market was relatively small, reaching $46.8 million, according to a new study by IDC.

By 2009 the market will grow to $428 million creating a new application segment laying the foundation for social networking to become a new communications tool used for a number of purposes besides consumer socializing.

"Social networking is the new must-have communication application and is being used for both marketing and operational efficiency," said Rachel Happe, research manager for the Digital Business Economy at IDC.

"Social networking applications drive engagements, information exposure, and conversions as well as reducing marketing and operational costs."

IDC finds there are three social networking segments emerging. These include self-service applications used by groups and marketing campaign teams, brand applications that focus on customer engagement and enterprise applications that offer better ways of working with customers and partners.

IDC predicts the social networking application market will grow quickly over the next three years and then slow as the majority of large companies likely to use social networking eventually do so.

The study also found that social networking application vendors will continue to materialize over the next two years, especially those dealing with vertical applications. As the market grows, social networking functionality will be built into communication platforms like email and instant messaging applications and the market, specifically the enterprise segment, will consolidate.