Social networking sites look to value-added functions

According to the Global Web Index for January 2010, seven out of the leading ten reasons that drive people online are functional. In other words, online users are more likely to turn to sites that allow access to news, research or education than platforms where they can simply upload photos and update their status.

In the four Asian countries monitored under the Index - China, Japan and South Korea - it is even more pronounced: people in Asia go online to share information and receive information.

In terms of SNS, this suggests an opportunity for those sites that can combine networking with 'learning'. "People want to contribute if you give them the chance," said Stefan Schneider, managing director at 3digitalminds. "But contribution is more than just being part of a community or a Facebook page, it's also about solving a task."

Smart.fm, a SNS originated in Japan, a social learning and community website that helps users improve their memory and enhance their earning skills, is a prime example in the region of a site that has expanded its purpose beyond social to 'functional social'.

The original platform focused on English learners and attracted roughly 300,000 users in its first year. As well as networking and chatting, users can also add in their own learning lessons on different genres.

Samuel Chan, general manager of G2 Direct Interactive Kuala Lumpur, says that one advantage of this and other functional social media is the kind of business model it offers. As difficult as it is to rely on a subscription system in digital and other media, people are far more willing to pay and learn than pay and play.

Having a function that goes beyond the narrow confines of social networking is also an attractive proposition for potential advertisers.

Mark Cripps, APAC regional director at MRM Worldwide agrees that social media is valued by clients only if there is a 'value-added' aspect to it.

Twitter, for example, has announced a paid model to its regular service that opens direct messaging between users. Cripps proposes an example from the consumer side whereby people can send gifts such as Starbucks coupons through social platforms to their friends.

However, one drawback for both advertisers and users is privacy. Transparency remains an issue, especially when media owners try to tailor the functions around the consumers too much.

Still, social media with a purpose can open up new horizons for brands. For one thing, brands and companies can now target a wider audience as new sites such as Foursquare are quickly discovering.

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This article was originally published in the 3 June 2010 issue of Media.