Creating business websites & Google advertising to boost your sales

MySpace, “Forget Paris!”

Jun 23rd, 2009 | By | Category: Marketing

myspace-160MySpace, which Rupert Murdock’s News Corp acquired for $580 million in 2005, has been eclipsed by Facebook, particularly overseas. In May, MySpace had 125 million users ages 15 and older, nearly half of them in the United States, according to ComScore, an online audience measurement service. Facebook had 316 million users, nearly four-fifths of them outside the United States. Over the past year, Facebook’s user numbers have grown by 155 percent, according to ComScore, while MySpace’s ranks have grown by only 9 percent. As a result, MySpace said it intended to cut 300 out of 450 jobs outside the United States. The June 23 announcement followed recent news of plans to cut about 400 jobs in the United States, about 30 percent of the total there.

Despite their popularity, social networks have been slow to attract paid advertising — in part, analysts say, because marketers can use these services more effectively by getting users themselves to spread the word about a music band or a brand. This is why I’m posting this in “Marketing” rather than “Advertising.” The most effective use of Facebook and MySpace pages seems to be viral marketing, not demographically-targeted advertising.

One comment
Leave a comment »

  1. This may be Sumner Redstone’s opportunity to buy MySpace from Rupert Murdoch. Mr. Redstone, the chairman of Viacom, was so furious that they missed the opportunity to buy MySpace in 2005 that he fired Tom Freston, the president of Viacom. MySpace is a much better fit for Viacom, owner of MTV. MySpace’s greatest strength is its ability to showcase music for new and established bands. NewsCorp has not been able to capitalize on the social networking and bring it to profit status.

Leave Comment