Discussion: Beverly Macy, technology writer and author of The Power of Real-Time Social Media Marketing, discusses the rise of social media and whether it’s a mainstream, revenue-generating business or the next dot.com crash.  While companies like Facebook and Groupon are indeed making money, what’s concerning is the amount of money chasing the next big thing on the heels of a recession.  In order to avoid a second tech bubble, Macy says two elements are crucial: engaging a huge audience and converging capabilities in order to keep these huge audiences sustainable.

Source: theatlantic.com

Date: January 21, 2011

Link: http://www.theatlantic.com/business/archive/2011/01/facebook-twitter-and-groupon-the-next-economy-or-the-next-tech-bubble/69987/

Questions for discussion:

• Money is going to what three big sectors of social media?
• Discuss why these sectors are risky as standalones but more promising if they converge.