Mapping the Social Media Ecosystem: A Content Analysis and Framework for Evaluating Social Media Business Models with Guidelines for Ethical and Sustainable Innovation

Abstract

This thesis explores the evolving business models of social media platforms, particularly focusing on how they can transition towards more sustainable and ethically responsible operations. Employing a comparative case study methodology, this research utilizes a tailored framework to analyze a diverse array of platforms across multiple dimensions, including value proposition, value delivery, value capture, technical architecture, ecosystem integration, data utilization, user agency, and financial resilience. The study highlights how popular platforms like Facebook and TikTok heavily rely on user-engagement optimization to drive advertising revenues, a strategy that often contributes to negative user experiences. These platforms have begun to innovate, diversifying their revenue sources through emerging technologies such as augmented and virtual reality, as a response to increasing user demands for privacy and greater regulatory scrutiny.

Decentralized platforms such as Mastodon and Steemit are examined as exemplars of alternative models that prioritize user-centric values over traditional profit-driven motives. These platforms implement community-led governance and transparent practices, enhancing user trust and data privacy. Findings indicate that a shift is already underway, with many businesses moving toward more user-centric value propositions and value capture mechanisms. By incorporating additional revenue streams such as subscriptions, marketplace functionalities, and value-added services, platforms are beginning to achieve financial stability without compromising user interests through engagement-driven optimization. Additionally, platforms like Tencent and Gab illustrate how innovation within the ecosystem integration dimension allows companies to offer a broader suite of services, thereby enhancing the platform’s overall value to users. This ecosystem approach not only improves user experience but also creates opportunities for revenue generation through multiple channels, supporting a more robust and resilient business model.

This thesis argues for a balanced approach, advocating that the future of social media lies in harmonizing monetization with ethical engagement practices. Platforms that successfully integrate diverse revenue streams, prioritize user empowerment, and maintain transparency in data usage will likely lead the way in establishing a sustainable social media ecosystem. Such strategies not only foster trust among users but also ensure platforms can withstand economic pressures while supporting a healthier, more engaging online community. Ultimately, our research offers a framework and practical guide for platforms looking to innovate responsibly and prioritize long-term sustainability alongside profitability.