There has been a lot of chatter about MySpace lately, and there is good reason for it. The amount of users and traffic the site is receiving is incredible. For some recent stats check out this article, “MySpace, The 27.4 Billion Pound Gorilla” on Tech Crunch. Clearly, online social networking and self expression is very popular among not only teens but adults alike.
According to an article published by Business Week last year titled “News Corp.’s Place in MySpace,” Fox Interactive purchased MySpace, along with 30 other sites, for $580 million. This raises two interesting questions. One, what was the primary motivation for Fox when they purchased MySpace, and two, how does that influence user perception?
Everyone knows the old media model is dieing a slow death. Subscription rates for print pubs are declining and any and all traditional media outlet are clamoring to find profitable alternatives online. In light of this trend, one can quickly discern why Fox would look to MySpace as the logical supplement for lost ad revenues.
But Fox is careful not to plaster MySpace with ads because they understand the impact that could have on the users. Instead, most of the ads are subtle and confined to certain banner locations, or companies create their own pages with interactive commercials that are catchy and cool.
The real value, according to Ross Levinsohn, President of Fox Interactive Media “wasn’t the number of users, but the information they are providing, structured and unstructured data.” This is a bold statement by Levinsohn because it sends the message that Fox Interactive, a large corporation, is capturing psychographic and demographic information from users on MySpace.
Being in marketing, I am not incredibly sensitive when it comes to giving up my personal information. If anything, I believe that it inevitably helps companies serve my interests better. If a person is worried about being taken advantage of because of information gathering then I think they have probably read Brave New World one too many times.
But there are a lot of people who are sensitive to information gathering. As more mergers occur and larger corporations hold larger shares, people get worried the common man and woman is losing control of their freedom, government, law and public policy.
I find it ironic that MySpace is successful based off of self expression and social networking, and yet, a large media company is using it to gather information. It will be interesting to see if this fact ever becomes a greater public concern and users start to migrate to other social networking sites because of it; or, will they simply go elsewhere because of the latest and greatest new fad and cool new features?
In my opinion, freedom of expression and the power of large social networks, regardless of who is watching, puts greater power in the hands of people. Big business may be benefiting, but they are only following, not leading.
Social networking sites, blogging and podcasting offer exciting new opportunities for businesses and represent viable channels for interacting with customers online. As long as a brand strategy and proper promotion is integrated into these efforts, there is no reason why these channels should not be a part of a company’s marketing and advertising campaigns.
What are your thoughts?
Technorati : MySpace, Social Networking, Social Networks