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Social Networking Goes Big Business

Posted by ryuzaki0 on from the this-profile-for-sale dept.

PreacherTom writes, "It is no secret that sites like Facebook and MySpace are big hits among students. Big business is catching on to their possibilities too. Even in the wake of online stalking scandals, companies such as JP Morgan Chase, Apple, and Burger King are building whole marketing campaigns around social networking sites, to the tune of an estimated $280 million in 2006. It appears to be working: take the King, for example, who has amassed more than 120,000 'friends' that opt (for rewards) to associate themselves with his profile." These marketing drives are aimed at younger consumers, but (from the article): "About 36% of MySpace users are people aged 35-54, as are 30% of Facebook users."

5 of 68 comments (clear)

  1. And here comes the bubble... by TheAmazingJambi · · Score: 2, Insightful

    I see this fad burning out in the next few years as teens move on to something else, or grow out of it. Now when the investing companies can get a larger adult user base, they'll have a chance at a long term business.

    1. Re:And here comes the bubble... by truthsearch · · Score: 2, Insightful

      MTV's not a fad. The phone isn't a fad. Hanging out at malls isn't a fad. These all became part of teen culture. The same may one day be said of myspace or other social networking sites.

      --
      Developers: We can use your help.
  2. A marketing wet dream by Colin+Smith · · Score: 3, Insightful

    Your customers tell you all about themselves, voluntarily and for free.

    Contrary to most geek's ideas, marketing is bloody difficult. It's actually very expensive, very hard work. You're essentially trying to model human society. That's why they'll pay you to answer questions.

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    Deleted
  3. Re:A preponderance of knowledge by Krater76 · · Score: 3, Insightful

    This isn't an EBay or a Google, it's just entertainment and no one is more fickle than the 18-24 demographic. Besides, it's just a matter of time. Kids grow up, trends change. Think about one of the hottest fads that were around when you were 18 and think about how much they affect you now.

    I honestly can't think of any fads at all. Maybe that's because 18-24 was college and college was a pretty good time on it's own :)

    --
    "Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery?" - Patrick Henry
  4. Re:population by dumbfounder · · Score: 2, Insightful

    Wow there is no way that statistic is actually what it sounds like. If the numbers are correct, which I highly doubt they are, then a user aged "35-54" means some old person that heard a kid talking about myspace and was like "wtf is this that" and then went to the homepage and clicked around and thought "this is stupid" and left never to return. If an advertiser used that stat to target their ads I am sure they wouldn't get a very good return. They need to base that stat on pageviews for it to make sense in this context. Based on pageviews I bet the percentage drops to less than 1%.