Online Networking
Internet The U.S. marketing industry is discovering a new playground on the Internet: Networking sites popular with teenagers, such as Myspace.com, are seeing more traffic than Google.
Internet The U.S. marketing industry is discovering a new playground on the Internet: social networking sites popular with teenagers, such as Myspace.com, are recording more visits than Google. Millions of teenagers spend hours there every day looking for friends, having fun, and presenting themselves to an anonymous audience. Over 50 million users—the majority of whom fall within the 14- to 24-year-old age group so coveted by the advertising industry—meet regularly on Myspace.com, for example. «Companies want to know where their most important demographic is,» says Cory Treffiletti of the agency Carat Fusion. «They can be found on Myspace.com.»
Already, 10 percent of online advertising is placed on Myspace.com. After all, according to data from the analytics firm Comscore Media Metrix, the site recorded 23 million pageviews in January 2006—more than companies such as Microsoft (20 million), AOL Time Warner (20 million), eBay (11 million), and Google (7.6 million). Only Yahoo, with 34 million page views, ranked ahead of the newcomer aimed at teenagers. Facebook.com ranked seventh with 5 million page views.
Rupert Murdoch, who incorporated the site Myspace.com into his media empire, News Corporation, last summer, once again demonstrated his keen business sense with the $580 million acquisition. «Myspace.com will look much more impressive in six months. We’ll be starting with videos soon,» he promised in an interview with Newsweek. Myspace.com will also be entering the search engine business soon. «We want to appeal to every kind of advertiser—from mom-and-pop shops to America’s largest corporations.» Myspace.com can also use the Murdoch-owned Fox network and the Fox youth channel My Network—which launches in September—to promote new shows, just as NBC has already done with its sitcom «The Office.».
Viacom CEO Tom Freston also announced the company's commitment to this area. «Everyone wants to know how to make money from this,» he said in an interview with Reuters. «Basically, we're asking people to run ads between people's conversations.»
John Page of the youth consulting firm Yankelovich points out that the networking aspect of the Internet is becoming increasingly important. «People want to make connections.» Brands that foster this connection stand to gain a particular advantage from this phenomenon: «They tap into users» «soft spot.»” Products that teenagers enjoy discussing with their friends, in particular, can help build a stronger bond with the brand. And to build this bond, you have to “equip kids with the tools that allow the brand to spread the word”—tools such as interactive features or electronic toys, for example.
Myspace.com was originally conceived by its founders, Tom Anderson and Chris DeWolfe, as a way to give young musicians a platform to showcase their music online. It worked. Thousands of artists—from superstar Madonna to wannabe rockers—now post their music online as MP3 files, hoping to achieve fame and fortune this way.
But that's not all. In December, Myspace.com launched a record label that releases albums by artists discovered through the website. In addition, there are plans for a Myspace radio station via satellite, new mobile phone features that allow users to log in to the website via their phones, and even Myspace movies. «We want to be a lifestyle brand,» says DeWolfe.
Industry observers believe that social networking sites such as Myspace.com, Facebook.com, and Friendster.com are giving rise to a new culture. According to a study by the Pew Internet & American Life Project, 87 percent of American teenagers use the Internet, and half of them create their own online content—known in technical jargon as «user-generated content.» Some users believe this has changed their lives. «Thank you so much, Tom,» writes a teenager named Swanna, for example. “Before I knew about MySpace, I was just a loser sitting at home waiting for the phone to ring. Now I can go out with all my new friends. I love you, Tom.”
Success Despite a Pedophile Scandal: Myspace.com Became the Subject of Public Debate
Recently, police in the U.S. state of Connecticut arrested a 21-year-old man suspected of raping a 14-year-old girl whom he had met through the website. Investigations into similar cases are also underway in other states, prompting numerous school and parent organizations to take precautionary measures regarding their children’s Internet use. In connection with this case, Myspace officials assure the public that they will do everything in their power to combat illegal and pornographic posts. Twelve Myspace employees alone go through thousands of online pages every day to review their content. Children under the age of 14 are barred from accessing the site. The problem is obvious to many, but difficult to solve. «In practice, the risk that pedophiles will actually make contact with children through Myspace.com is low,» says Alex Halavais, a computer science professor at the University at Buffalo. He adds: «But even a small number is enough to trigger a moral panic.» Although the advertising industry was initially shocked, this had little impact on the site’s business: 50 million young people are too compelling an argument. «These users are the best customers companies could have for their brands,» says Treffiletti. «That’s because they actively engage with the ads.»
Already, 10 percent of online advertising is placed on Myspace.com. After all, according to data from the analytics firm Comscore Media Metrix, the site recorded 23 million pageviews in January 2006—more than companies such as Microsoft (20 million), AOL Time Warner (20 million), eBay (11 million), and Google (7.6 million). Only Yahoo, with 34 million page views, ranked ahead of the newcomer aimed at teenagers. Facebook.com ranked seventh with 5 million page views.
Rupert Murdoch, who incorporated the site Myspace.com into his media empire, News Corporation, last summer, once again demonstrated his keen business sense with the $580 million acquisition. «Myspace.com will look much more impressive in six months. We’ll be starting with videos soon,» he promised in an interview with Newsweek. Myspace.com will also be entering the search engine business soon. «We want to appeal to every kind of advertiser—from mom-and-pop shops to America’s largest corporations.» Myspace.com can also use the Murdoch-owned Fox network and the Fox youth channel My Network—which launches in September—to promote new shows, just as NBC has already done with its sitcom «The Office.».
Viacom CEO Tom Freston also announced the company's commitment to this area. «Everyone wants to know how to make money from this,» he said in an interview with Reuters. «Basically, we're asking people to run ads between people's conversations.»
John Page of the youth consulting firm Yankelovich points out that the networking aspect of the Internet is becoming increasingly important. «People want to make connections.» Brands that foster this connection stand to gain a particular advantage from this phenomenon: «They tap into users» «soft spot.»” Products that teenagers enjoy discussing with their friends, in particular, can help build a stronger bond with the brand. And to build this bond, you have to “equip kids with the tools that allow the brand to spread the word”—tools such as interactive features or electronic toys, for example.
Myspace.com was originally conceived by its founders, Tom Anderson and Chris DeWolfe, as a way to give young musicians a platform to showcase their music online. It worked. Thousands of artists—from superstar Madonna to wannabe rockers—now post their music online as MP3 files, hoping to achieve fame and fortune this way.
But that's not all. In December, Myspace.com launched a record label that releases albums by artists discovered through the website. In addition, there are plans for a Myspace radio station via satellite, new mobile phone features that allow users to log in to the website via their phones, and even Myspace movies. «We want to be a lifestyle brand,» says DeWolfe.
Industry observers believe that social networking sites such as Myspace.com, Facebook.com, and Friendster.com are giving rise to a new culture. According to a study by the Pew Internet & American Life Project, 87 percent of American teenagers use the Internet, and half of them create their own online content—known in technical jargon as «user-generated content.» Some users believe this has changed their lives. «Thank you so much, Tom,» writes a teenager named Swanna, for example. “Before I knew about MySpace, I was just a loser sitting at home waiting for the phone to ring. Now I can go out with all my new friends. I love you, Tom.”
Success Despite a Pedophile Scandal: Myspace.com Became the Subject of Public Debate
Recently, police in the U.S. state of Connecticut arrested a 21-year-old man suspected of raping a 14-year-old girl whom he had met through the website. Investigations into similar cases are also underway in other states, prompting numerous school and parent organizations to take precautionary measures regarding their children’s Internet use. In connection with this case, Myspace officials assure the public that they will do everything in their power to combat illegal and pornographic posts. Twelve Myspace employees alone go through thousands of online pages every day to review their content. Children under the age of 14 are barred from accessing the site. The problem is obvious to many, but difficult to solve. «In practice, the risk that pedophiles will actually make contact with children through Myspace.com is low,» says Alex Halavais, a computer science professor at the University at Buffalo. He adds: «But even a small number is enough to trigger a moral panic.» Although the advertising industry was initially shocked, this had little impact on the site’s business: 50 million young people are too compelling an argument. «These users are the best customers companies could have for their brands,» says Treffiletti. «That’s because they actively engage with the ads.»
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