Consolidation Needed in the White Label Social Networking Industry

I’ve been tracking with great interest the “White Label” (meaning you can rebrand as your own) Social Networking space with great interest for some time. When I first started the master list, it was at about 20 companies. Now it pushes 70 companies, and even spills over to collaboration and insight lists too.

I’m expected to know this market (it’s in my coverage area as an Analyst) and quite frankly, it’s very, very hard to keep track. I can only imagine how interactive marketers and web strategists feel. In fact, every other day I get an email or comment to message asking me for my opinion.

Today, Mzinga Acquires Prospero, who are both in the space. I actually had Mzinga in my insight community list, and Prospero on my white label list, so if all goes well for them, they have the opportunity to match features up. They aren’t the only ones, last month ONEsite Acquires Social Platform, and you can expect more of this to happen.

I’ve been chatting with Mark Hendrickson of Techcrunch, who’s also on point to watch this vertical, and I shared with him my thoughts on where this industry is headed. Read the interview at More Consolidation in the White Label Social Networking Space: Mzinga Acquires Prospero.

We should expect other players on this space to start consolidating, to strengthen their offerings, increase customer base, reduce overlapping costs, and to prepare to battle as others start to team up.

By the way, in Q2-Q3, I’m slated to do specific research on this market, to segment the market so interactive marketers will be able to make a decision on who to choose. Stay tuned.