Is MySpace A Google Killer
It was July 19th, 2005 when Robert Murdoch surprised Wall Street when he spent $580m to purchase MySpace, So how does the investment look 2 1/2 years later?
When Murdoch bought MySpace it was predominately a US social network. Today it is a worldwide force with 24 local versions. Besides introducing new musicians and playing host to amateur filmmakers, MySpace is also signing artists to its own record label and developing online video series. Earlier this month it introduced a content guide called MySpace Celebrity.
All these changes have worked out well for MySpace. With an estimated 110 million monthly active users, and more than 1.3 billion page views a day, MySpace has become a favorite of advertisers.
Richard Greenfield, a media analyst for Pali Research was interviewed by the New York Times recently and he said expected MySpace to have around $800 million in revenue in fiscal 2008, mostly through advertising. That $580 million purchase price looks pretty cheap now.
Chris DeWolfe, the co-founder and chief executive of MySpace is working on changing the image of MySpace.
“Some people still perceive MySpace like it was in early 2004, as a niche place for scenesters in New York and Los Angeles. That’s how it started, but it’s become very mainstream,” Mr. DeWolfe, 41, said. “It’s about consuming content and discovering pop culture.”
As part of its makeover, MySpace is starting to resemble more and more a traditional media platform like Yahoo or AOL than a traditional social networking site. Peter F. Chernin, the president and chief operating officer of the News Corporation, called MySpace a “contemporary media platform” and said the site existed to “create content and connect people to one another.”
There is no doubt that the purchase of MySpace by Robert Murdoch was a smart business deal. The site dominates the social networking space in terms of visitors, page views and advertising revenue.
What will be interesting to watch in the coming twelve months is how MySpace develops as a media platform. MySpace has the potential to match the growing media platform that is Google. At the moment Google and MySpace are business partners, but I expect that relationship to be challenged as MySpace continues to grow.
Remember that since the MySpace acquisition Murdoch has purchased the Wall Street Journal. An advertising platform that covers Music, Celebrities, TV and Finance could be a Google killer.
Filed under Brand Marketing, Social Media Marketing, Social Media Optimization : Comments (8) : Jan 28th, 2008
January 28th, 2008 at 6:14 am
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January 28th, 2008 at 6:30 am
Still full of errors, has a bad reputation to the people who tend to matter (webmasters) and already has Google search integrated right?
January 28th, 2008 at 6:51 am
[…] David Wilson wrote an interesting post today on Is MySpace A Google KillerHere’s a quick excerptWhen Murdoch bought MySpace it was predominately a US social network. Today it is a worldwide force with 24 local versions. Besides introducing new musicians and playing host to amateur filmmakers, MySpace is also signing artists to its … […]
January 28th, 2008 at 7:03 am
[…] Recursos humanos, reclutamiento online, portales de empleo y marketing a candidatos :: MonReal wrote an interesting post today on Is MySpace A Google KillerHere’s a quick excerptIt was July 19th, 2005 when Robert Murdoch surprised Wall Street when he spent $580m to purchase MySpace, So how does the investment look 2 1/2 years… […]
January 28th, 2008 at 10:20 am
Glen
I see MySpace not as a Google killer because of search, but because it is becoming a media platform similar to Goole/Doubleclick. They both are competing for advertising dollars
March 18th, 2008 at 2:59 pm
[…] Is MySpace a Google Killer March 18, 2008 Filed under: Myspace, interchanges.com, marketing, myspace marketing, social marketing, social media, social networking — Shawn Welk @ 6:52 pm source:http://social-media-optimization.com/2008/01/is-myspace-a-google-killer/ […]
April 7th, 2008 at 11:44 am
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April 7th, 2008 at 11:44 am
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