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Media of course is a key element of social media. However only a few avant garde "traditional" media companies have fully embraced the social aspect of their business.

#1 – News Corp.

Rupert Murdoch’s News Corporation (NASDAQ: ) is one of leading global media companies today. Its forward-thinking approach was seen as it took one of the first forays into social media by buying social network MySpace in 2005. While MySpace has lost its pre-eminent position to faster-growing Facebook, and critics have voiced complaints that News Corp. may have overpaid for it, MySpace still remains one of the largest social networks with 122 million users (vs. Twitter’s 100 million). Most recently, they’ve revamped their music offerings and leveraged their strength with both bands and fans in the space. In fact, nearly all musicians across the spectrum maintain MySpace profiles. And MySpace Music, its joint venture with major recording labels and Sony/ATV Music Publishing, is a widely utilized tool for artists to feature and promote their work.

On the news side, management has moved aggressively into the applications markets for mobile and tablet devices, where more people are getting their news, commenting on it and sharing it with friends. Their Wall Street Journal Digital Network has established a reputation as an innovative player in the online news sector.

News Corp. has remained relatively steady during this turbulent market. With a trailing P/E multiple under 16, News Corp. will be well-positioned as the economy and advertising markets improve.

As one of the most well-known brands in the world, The Walt Disney Company (NYSE: ) continues to expand its online operations. As the owner of highly desired content the world over, Disney keeps evolving new ways of offering its content to increasingly fragmented audiences, whether through branded social networks, ABC shows available online or its newest big push, into social media gaming.

Its $563 million (plus incentives) purchase of profitable game developer Playdom brings its strong talent in the fast-growing social media gaming space. This new position in the online world adds several potential revenue streams. For example, it’s been reported that Disney plans to leverage Playdom by integrating its own brands into Playdom’s games and by selling online goods and advertisements. Playdom will also fit nicely with Club Penguin, the kiddie-themed virtual world Disney bought in 2007 for $350 million.

One analyst sees Disney growing this business 30% to 40%. In conjunction with its earlier acquisition of Tapulous, a maker of mobile games, management has important new channels to extend their creative properties to existing as well as new audiences, including their latest acquired ones through their Marvel and Pixar buys.

While other media conglomerates like Time Warner are divesting assets, Disney remains aggressive in making the “Mouse” available through all sorts of new digital channels.

Innovative companies like SuperMedia Inc. (NASDAQ: ) are leveraging their old-world information platforms into modern social communities where relationships create valuable business opportunities for their members. For example, SuperMedia has a membership group that brings their own unique products and services that they give to members of the community in exchange for "SuperBucks" that they can spend for other members’ services. SuperMedia also builds websites for small businesses and designs programs that help these companies break into the social media networks.

For those companies that advertise with SuperMedia, they can be tied into a network of 250 websites such as GenieKnows, many of which contain their own social media networks that include information sharing and community interaction. SuperMedia is an extremely cheap stock that generates $1.6 billion in revenue annually, but trades way below book value because Wall Street sees it as a dinosaur that prints the yellow pages and which went into bankruptcy to reduce and rework its heavy debt load.

But SuperMedia, now nine months out of Chapter 11 and having reduced its debt load from $9.3 billion to $2.7 billion, is using social media to reinvent itself and will soon be a pure play Internet story, leaving those big bulky yellow pages as nothing but a memory. Target price: $30 per share.

In social media, there is a true community that is sustained by its relationships and its common goals and interests. There is continual discussion, but action is also a key tenent of a successful site. A flourishing social media site also helps to improve the physical, emotional and economic life of its members as well as enhance the spiritual, social and even political collective interests of its members. Social media is changing the landscape of America, and those companies that leverage this trend are positioned to benefit from reaching an entire audience of common interests or goals.

#4 – Joe’s Jeans

One of the fastest-growing fashion companies, Joe’s Jeans Inc. (NASDAQ: ), is using social media to reach and appeal to retail shoppers that may not be aware of the brand. For example, even before social media was in full force, Joe’s Jeans was holding contests on sites such as 5minutesformom.com in which "first hand" testimony of moms who felt like they were being "followed by a mob of paparazzi" when they wore Joe’s Jeans could win a pair of jeans if they provided commentary on a social media site.

Part of the hook is that social media appeals to the "altruistic" side of us all, and Joe’s Jeans is no exception. The company also was donating Jeans to families who didn’t have the money for Christmas presents.

Joe’s has grown its business by opening up real stores in well-trafficked upscale designer premium-brand outlets, but their social media campaigns that target specific consumer groups and appeal to their emotions has been a way to augment their brand image and create a diversified and loyal following of customers.

All this social media growth requires an ever critical foundation of hardware, networks and software infrastructure to support it all.

#5 – Cisco

All this time spent online friending, gaming, chatting and blogging requires Internet bandwidth for powerful Internet connections. One of the companies that stands to benefit from increased Internet traffic is Cisco Systems, Inc. (NASDAQ: ). Products like routers, storage area networks, home networking systems and video systems are all needed to support this growth.

As one of the bellwethers for the tech industry as a whole, Cisco is a great way to participate in the tech sector’s gains, especially those driven by social media growth. Just under $22, the median analyst price target is $28, and Cisco announced on Sept. 14 that a dividend is imminent, so there are certainly some strong prospects ahead.

Disclosure: Hilary Kramer owns shares in Cisco.

Another way to leverage the seemingly never-ending growth in traffic and demand for more content like video is Akamai Technologies, Inc. (NASDAQ: ), one of the leading global players for accelerating content and applications online, like uploading and downloading of large files. Basically, Akamai allows faster performance by optimizing Web and mobile content and applications.

Social media companies increasingly use Akamai’s services for help with delivering, storing, monetizing and managing significant amounts of unique and dynamic content as well as supporting unprecedented levels of Web site traffic. Akamai provides instant infrastructure for upload, download and delivery of content and application acceleration.

How much data volume are we talking about? Akamai last reported that they delivered more than 1 million requests per second for businesses in the social media space, and according to data released by Hitwise (December 2007), Akamai supported seven of the top 10 most trafficked social networking sites and 92% of social networking site visits in the U.S.

Akamai has been on a tear for the past year, most recently due to merger rumors. Whether eventually acquired by a larger industry player looking to add their technology and growth or remaining a stand-alone player, Akamai looks to be a strong beneficiary from further growth in the social media space, as well as the broader Internet economy.

Social media is in use 24 hours a day. Gone are the days of checking Facebook only at night and from a user’s own home PC set-up. Today, users are hooking into their social media network from BlackBerries, Andorids, iPhones, and the newest entrant to the mobile web device, the iPad. All of these mobile devices require very sophisticated brains, known as semiconductors, to operate their systems and allow for the complexity, memory and speed at which social media operates. As a result, the semiconductor manufacturing process continues to become more complicated and technologically advanced. This is where Teradyne, Inc. (NYSE: ) comes in to the picture — providing test equipment tools so that producers can ensure the best quality control in the creation of these tiny chips that are experiencing robust global demand.

Goldman Sachs is so bullish on Teradyne’s roll in the semiconductor process that the firm placed a highly unusual six-month target of $17 on Teradyne — representing more than 50% of upside.

Disclosure: Hilary Kramer owns shares in Teradyne.

Microsoft Corporation (NASDAQ: ) invested $240 million in Facebook in late 2007 and continues to have a supportive and obliging relationship with the fast-growing Silicon Valley Company. that Facebook and Microsoft are in advanced conversations to form a joint-venture that would significantly expand their search relationship. Microsoft’s Bing search service would be allowed to collect information from members of Facebook who use the just launched "Like” buttons.

The Like button allows users to point their Facebook friends to any Internet page that they find appealing with only one click. This is huge because it could provide information to advertisers that can be amassed with ease rather than extrapolating from billions of pieces of data. But here is why it is so important for Microsoft. Microsoft’s search engine, Bing, will now have superiority over Google, since propriety data will be available to Bing that becomes increasingly valuable and important as Facebook’s information-breeding audience grows increasingly bigger.

Microsoft stock has at least another 20% of upside that should come to fruition within the next year. Leaving aside their forays into social media — that will, of course, have great value — the company is at the beginning of a new product cycle upgrade and, for those of you that want dividend yield and value, Microsoft just announced that it will be selling debt to generate cheap cash in order to buy back its stock and pay dividends — already yielding 2.1% annually.

Disclosure: Hilary Kramer owns shares in Microsoft.

Social media is increasingly moving from the desktop (home or office) to a 24/7, always-on environment. Mobile platforms, whether smartphones or new tablet devices are fast becoming a dominant channel for people to consume, create and share media.

#9 – Apple

Is there anyone out there who doesn’t have — or at least want — some Apple product? In addition to their computers and laptops, Apple Inc. (NASDAQ: ) leads the way in innovating across two huge markets: online music and mobile products. Whether through iTunes, iPods, iPhones or iPads, Steve Jobs and company continue to roll out well-received, highly desired products along with a stream of powerful earnings.

Their latest offering, Ping, the new iTunes-related social music network, directly places it in the social media space and potentially competes with market-leading Facebook. While reviews haven’t been stellar and adoption will be critical, the huge base of users and iTunes installs put it in a strong position to succeed. A successful Ping and related social offerings will only drive further customers to the Apple ecosystem. Don’t judge this first foray into the social media arena by this first iteration. Apple has the audience, reputation and capital to stay with it, and combined with management’s intention to play in the social media space, has a strong chance to succeed and further grow its core businesses.

While at the high end of its 52-week range, analysts put its price target at about $335. Though the stock has experienced a heady rise over the past few years — and especially the past month — Apple’s price-to-earnings ratio holds up well against the S&P 500 and against its peers. I believe there is still room left for it to grow.

Social media applications and services are continually being consumed on mobile devices. According to Facebook, there are more than 150 million active users currently accessing Facebook through their mobile devices, and people who use Facebook on their mobile devices are twice as active on Facebook than non-mobile users, so another way to participate in this trend is through the wireless carriers. AT&T (NYSE: ) has had exclusivity on the iPhone since its launch, . While already benefiting from the growth in mobile social media activity with its phones like the popular Droid in the competing Android mobile phone market, Verizon Communications Inc. (NYSE: ) is one carrier that stands to take advantage of that change.

There’s a huge amount of unhappiness, fairly deserved or not, with AT&T’s service for the iPhone, the sole choice at the moment. However, about two million iPhone service contracts expire in the U.S. each quarter (according to investment bank Collins Stewart). Many of those could migrate to Verizon if such service were available, in addition to the large population of users who would love to use an iPhone if available with Verizon service. Even without the iPhone, Verizon wireless margins are strong, and customer defections are relatively few. However, a Verizon iPhone offering could be a huge catalyst for both companies.

And with bank rates approaching, well, zero, Verizon pays a strong dividend of about 6%, which can provide your portfolio with a strong tranche of stability.

Disclosure: Hilary Kramer owns shares in Verizon.

All social media has its underlying foundation on the Internet. And Internet giants are not ignoring social media.

#11 – Google

Google Inc. (NASDAQ: ) is the far and away leader in the online search market, making billions of dollars each quarter. But management prefers not to be a one-trick pony and keeps looking for new sectors to put its growing cash hoard and vast array of talent to work. Social media is in its crosshairs.

While relatively small, Google had acquired 11 social media companies (five alone in August) so far this year. Industry pundits keep wondering where they want to go with social networking, though based on some of the recent acquisitions, gaming seems as if it will be a core component of its strategy. However, there’s not yet much visibility to this strategy.

Social media is important to Google because of its underlying potential capability to further drive advertising revenues. That’s why they’ve made the major efforts into mobile with its fast-growing Android platform. The market potential for advertising in mobile social media will mirror the growth in web-based social media already seen by Facebook.

Google already has Orkut, a social network with 100 million users worldwide and of course, YouTube, its video network with social and community features.

While closer to the bottom of its 52-week range, price targets are near the top of its range ($620), so there’s certainly room to grow. Should Google get its social media engine revving with its online advertising machine, watch out!

Gaming companies need to go where people are, and gamers today want to play with friends on their social networks.

#12 – Electronic Arts

One of the leading developers and distributors of video and online games (think Madden, The Sims, EA Sports), Electronic Arts Inc. (NASDAQ: ) has recognized the growing importance of social media as it relates to the gaming sector. Last year, they paid $275 million for social gaming company Playfish. At that time, Playfish was the second most popular game producer on Facebook, with more than 60 million active monthly players. Electronic Arts is now the second-largest on Facebook (behind leader Zynga).

Electronic Arts has also been adding more components with social features, letting players compete with friends down the street or across the globe.

Management has been working to narrow Electronic Art’s portfolio to profitable high-quality games, while pushing aggressively into new revenue streams such as Facebook games and digital add-ons for games sold in stores. Electronic Art’s most recent results (June quarterly net income of $96 million vs. a year earlier period loss of $234 million, and quarterly net revenue up to $815 million from $644 million) surpassed Wall Street’s expectations for the second quarter in a row.