Why Facebook will make an economic impact beyond advertising in 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Here is a simple but overlooked observation. Facebook reached it’s tipping point (the hockey stick uptake) in 2008. .

But here is a more interesting point: the people who were 15 then are now gaining economic power and independence.

So, this year onwards (when they are 18/19) the true impact of the facebook generation on the economy will be felt.

This will be truly disruptive because they will shape business processes.

Once the ‘natively social’ generation enters the economy, their purchasing power will drive the economy.

They will choose/ignore some brands.

Their recommendations will create a ripple effect on the consumption patterns.

They will choose to work with some employers and ignore the old-fashioned employers.

Thus, power will pass to the younger generation and to companies they choose to work with rather than to the current employers who naively believe that they call the shots.

This will lead to a greater ‘start-up culture’ creating another leverage of economic impact

The above will have a knock-on, positive effect on the economy  - creating clusters of innovation around companies and products and thereby countries.

Image source: wikipedia 

 

UPDATE

The Internet vs the Washing machine – Does the washing machine have a greater impact on society than the Internet?

PS – Also good article from NY times on a related theme – Using social media as an adolescent portal than pitfall