Friendster was not the first social network. That honor belongs to SixDegrees.com, which launched during the dotcom boom in 1997 and is named after a Stanley Milgram theory that every human is separated from others by no more than six degrees.
The idea of a connected virtual community, however, took off with the wildly popular Friendster, the first social network to succeed in making your number of “friends” the new yardstick of social success. Social networking buzz quickly gained a fever pitch in Silicon Valley circles.
With its servers groaning under massive traffic spikes, Friendster landed a $13 million round led by Kleiner Perkins Caufield Byers and Benchmark Capital, valuing the fledgling outfit at a startling $53 million.
Within months of Friendster’s funding round, a slew of high-profile ventures launched:
- LinkedIn (December 2002) – Hot on Friendster’s heels was LinkedIn, a social network designed for professional networking, which launched in May 2003. After eBay paid $1.5 billion to buy PayPal, former Executive Vice President Reid Hoffman was casting about for his next big project. As one of Silicon Valley’s most connected players, Hoffman felt there was a need to help people build their business network. Hoffman’s bet was on the money. Microsoft acquired LinkedIn for $26.2 billion in June 2016, resulting in a payday for Hoffman of $2.8 billion. As of Nov. 1, 2023, the business network had 1 billion members.
- MySpace (August 2003) – Established as a music-driven version of Friendster, MySpace quickly caught on with millions of teenagers and young adults as a place to maintain a profile page, often decorated with garish artwork. Tom Anderson conceived of MySpace at eUniverse, an online marketing company company he started with Chris DeWolfe. MySpace launched in January 2004 and reached 1 million registered users one month later. By November 2004, membership had reached 5 million. That meteoric growth led News Corp. to acquire MySpace in July 2005 for $580 million. At the time, the social network had 22 million registered users. When News Corp. sold MySpace to Justin Timberlake and Specific Media for $35 million in 2011, it had just 35 million monthly visitors, according to comScore, compared to Facebook’s 700 million members.
- Facebook (February 2004) – Founded as “TheFacebook” by Harvard student Mark Zuckerberg, this social network initially limited membership to Harvard College students. Within a month, more than half the undergraduate Harvard population had joined the new service. In June 2004, Facebook received a $500,000 investment from PayPal co-founder Peter Thiel. In April 2005, Silicon Valley venture capital firm Accel Partners invested $12.7 million at a valuation of about $100 million. That was followed by a $27.5 million investment from Greylock Partners in 2008. The rest is history. Facebook is now the world’s largest social network with 2.9 billion users. It established a new social dialogue, including “poke” and “like,” early on. For more Facebook information, see 02. Facebook.
- Twitter (March 2006) – Twitter launched on July 15, 2006. The company was founded by Jack Dorsey and Evan Williams, who revealed that the original name for the service was Twttr, inspired by the success of Flickr. Twitter’s tipping point occurred at the 2007 South by Southwest (SXSW) festival when use soared from 20,000 tweets per day to 60,000. The Dec. 21, 2008 tweet announcing that Continental Airlines flight 737 had slid off the runway, sent by Mike Wilson (@2drinksbehind), seated in 13C, thrust Twitter into the limelight. Another Twitter first was the eyewitness report of a US Airlines jet crash-landing in the Hudson River in January 2009. As Twitter began to scoop mass media regularly, it became the go-to source for millions of new users who were thrilled by its ability to provide realtime news. Between 2009 and 2010, Twitter grew 200% to 54 million, and reaching 100 million users by September 2010. For more Twitter information, see 07. Twitter.
- Tumblr (February 2007) – Like Twitter, Tumblr initially focused on short posts. Unlike Twitter, however, Tumblr had no 140-character limit. Within two weeks, Tumblr gained 75,000 users. What it did have was a beautiful, easy-to-use interface co-designed by founder and web developer David Karp and lead developer Marco Arment. On May 20, 2013, Yahoo! Inc. acquired Tumblr for $1.1 billion in cash. After Verizon acquired Yahoo in June 2017, Tumblr was sold to WordPress creator Automattic for a reported $3 million.
- Instagram (October 2010) – Instagram, founded by Kevin Systrom and Mike Krieger, began life in San Francisco on March 5, 2010, as Burbn, a mobile check-in app. After closing a $500,000 funding round from Andreessen Horowitz, Instagram launched as an iOS app focused on photo and video sharing. It quickly became popular, amassing over 1 million users within two months. Facebook acquired Instagram in April 2012 for approximately $1 billion in cash and stock. This strategic purchase allowed Instagram to leverage Facebook’s massive resources, accelerating growth. By integrating new features such as Stories, IGTV, and Reels, Instagram continually evolved, surpassing 1 billion monthly active users in June 2018 and reaching 2 billion by December 2021. For more Instagram information, see 04. Instagram
- Google+ (June 2011) – On June 28, 2011, Google launched its long-awaited response to Facebook, Google+, to rave reviews. The new social network’s claim to fame was “circles.” Eight years later, on April 2, 2019, Google shut down the personal version of Google+. Google did launch a predecesor, called Orkut, in 2004. Orkut was popular in Brazil and India but was closed in June 2014.
- Threads (July 2023) – Meta leveraged its 2 billion Instagram users to help launch a Twitter competitor, Threads, with “just under” 100 million sign-ups. On Aug. 1, 2024, Threads crossed the 200-million mark.
Social Media Impact
According to Merriam-Webster, the term “social media” was first used in 2004. Just five years later, it was clear that the world was in the midst of a social media revolution. One that was shape-shifting life worldwide. It was the benevolent force behind the Jan. 25, 2011 Arab Spring protests. It also created upheavals in the political landscape, leading to the U.K.’s Brexit and the U.S.’ gaping partisan divide.
An eye-opening measure of social media’s impact is its market penetration. There were 5.4 billion internet users worldwide, representing 67% of the global population as of April 2024. Of this total, 5.1 billion, or 63% of the world’s population, use social media.
Usage Patterns
In February 2009, time spent on social networks surpassed e-mail for the first time, signaling a sea-change shift in consumer engagement. That was a remarkable achievement considering email mainstreamed just 15 years earlier.
Social media addiction has spawned new trends, like Screensucking, and has made engaging via social media part of a new communication ethos. Social media have disrupted the world journalism with 30% of U.S. adults now saying they regularly get their news from Facebook.
Even more remarkable is the total reinvention of consumer and marketing behavior:
- Daily use – Two-thirds of the 3.1 billion “monthly active users,” 69% or 2.1 billion people, use the platform daily.
- Time spent – Research from GWI reveals that the “typical” social media user now spends 2 hours and 23 minutes per day using social media platforms.
- Engagement – Over 72% of users say they use Facebook to message friends and family, while 59% of users have reached out to a brand on the platform.
- Open Graph – At its second F8 developer conference in May 2008, Facebook introduced “Facebook Connect,” which allowed users to link their Facebook identity, including friends and password settings, with other sites. At the April 2010 F8, Facebook announced it would replace “Facebook Connect” and “Facebook Platform” with the Open Graph protocol, which made Facebook’s automatic log-in a standard virtually overnight. Marketing has never been the same since.
Influencer Marketing
Nowhere has the impact of social media reverberated more than in marketing. Social media influencers have revolutionized the landscape, transforming how brands connect with consumers in the digital age. Leveraging their substantial followings and authentic engagement, influencers serve as powerful intermediaries between brands and target audiences.
Their ability to craft relatable, persuasive content has shifted marketing strategies from traditional advertising to more personalized, trust-based approaches. As a result, influencer marketing has emerged as a dynamic and effective tool for brands seeking to enhance visibility, build credibility, and drive consumer behavior in an increasingly interconnected world:
- Market size – Influencer marketing has more than tripled since 2019, reaching $24 billion in 2024 globally.
- Effectiveness – According to Linqia, among those testing influencer content in 2023, 36% said it outperforms their brand-created content, while another 30% said it matches its performance.
- Backlash – But as with anything, too much of a good thing can produce a backlash. The de-influencing trend — a rejection of the consumerist influencer culture — has resulted in 69% of American social media users saying they have chosen not to purchase items on TikTok or Instagram.
- Authenticity – Another countervailing trend is the search for authenticity. Social media users increasingly want honesty and openness, given that some influencers, dubbed “Shill Anything Barbies,” engage in pump-and-dump schemes to promote products of dubious quality. Already, 86% of consumers feel authenticity is important when deciding what brands they like and support.
Raw and Unfiltered Content
What’s driving this shift towards authenticity? One answer may lie in the growing popularity of raw and unfiltered content. Platforms like Instagram and TikTok have given rise to a new wave of creators who embrace imperfection and share unedited, unscripted moments from their daily lives.
This trend is not limited to individual creators, however. Brands are also taking note, with 71% of marketers saying they’re prioritizing authenticity in their social media strategies. By showcasing real employees, customers, and behind-the-scenes moments, brands are able to build trust and connect with their audiences on a deeper level.
Ascent of Micro-Influencers
As the desire for authenticity grows, the traditional influencer model is under pressure. As users become increasingly skeptical of sponsored posts and #ad-filled feeds, users are turning to “micro or nano-influencers.” Micro-influencers have 15,000-75,000 followers, while nano-influencers have less than 15,000 followers.
These everyday people share authentic, expert advice and recommendations are seen as more trustworthy and relatable, with 82% of consumers “highly likely” to follow a recommendation made by a micro-influencer.
As we move forward in this new era of social media, authenticity is key. Users crave realness, transparency, and imperfection, and brands and creators are taking note. By embracing this shift towards authenticity, brands and individuals can build stronger, more meaningful connections with online communities and create a more honest, transparent social media landscape.
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