Agenda

A Brief History

What is Social Networking

Changes in Online Behaviour Patterns

The MySpace Generation

Never Ending Friending

Permission Branding& Brand Networking

A Brief History

What is Social Networking

Changes in Online Behaviour Patterns

The MySpace Generation

Never Ending Friending

Permission Branding& Brand Networking

MySpace History

• Site officially launched January 2004

• A “Next Generation Portal” built on a social networking infrastructure

• Founded by Chris de Wolfe and Tom Anderson

• First European employee – February 6, 2006

• Grown from roughly 1MM uniques throughout Europe to more than

25MM today

• July 1, 2006: 5 Employees + 3 Consultants in UK only

• Today: 175 Employees in 10 European Territories

Pan European Footprint: Site Localised in 10 Markets

• UK (April ’06)• Ireland (June ’06)• France (Sept ’06)• Germany (Sept ’06)• Spain (Jan ’07)• Italy (Jan ’07)• Netherlands (April ’07)• Sweden (June ’07)• Austria (June ’07)• Switzerland (July ’07)• Denmark - Beta• Finland - Beta• Norway - Beta

Social Networking: By Definition

A "social network site" is a category of websites with:

• Individual profiles• Semi-persistent public commentary on the profile • A traversable, publicly articulated social network

displayed in relation to the profile.

*Source: apophenia, 11/2006, author: Dana Boyd

Online Media Consumption

April 2006

*Source: comScore Media Metrix April - 2006

Items 1 to 500 of 2000

Total Unique Visitors

(000)

% Reach

Average Daily

Visitors (000)

Total Minutes

(MM)

Average Minutes

per Usage Day

Total Pages Viewed (MM)

Average Usage

Days per Visitor

  Total Internet : Total Audience 30,058 100.0 19,075 52,599 91.9 93,972 19.0

 

1[E]

EBAY.CO.UK 16,204 53.9 3,245 2,712 27.9 5,281 6.0

2[E]

MSN.COM 20,016 66.6 7,285 2,691 12.3 3,010 10.9

3[E]

GOOGLE.CO.UK 20,511 68.2 6,695 915 4.6 2,882 9.8

4[E]

HOTMAIL.COM 15,383 51.2 4,687 2,005 14.3 2,057 9.1

5[E]

YAHOO.CO.UK 12,917 43.0 3,233 888 9.2 1,751 7.5

6[E]

BBC.CO.UK 16,360 54.4 2,846 971 11.4 1,504 5.2

7 [P] MYSPACE.COM 3,570 11.9 641 530 27.6 1,412 5.4

8 [P] PICZO.COM 3,718 12.4 620 342 18.4 1,294 5.0

9[E]

YAHOO.COM 14,126 47.0 3,114 818 8.8 1,284 6.6

10 [P] BEBO.COM 2,899 9.6 459 281 20.4 880 4.8

11[E]

GOOGLE.COM 17,241 57.4 5,205 363 2.3 870 9.1

3.6 Billion Pageviews...

August 2007

Items 1 to 50 of 14384Total Unique Visitors (000)

% ReachAverage Daily Visitors (000)

Total Minutes (MM)

Total Pages Viewed (MM)

Total Visits (000)

  Total Internet : Total Audience 31,918 100.0 22,306 66,851 109,741 2,274,043

1 [P] BEBO.COM 10,740 33.7 3,013 3,602 8,602 201,791

2 [E] GOOGLE.CO.UK 26,768 83.9 11,263 1,777 5,231 909,246

3 [E] EBAY.CO.UK 18,910 59.2 3,484 2,780 4,399 211,498

4 [M] MYSPACE.COM 10,175 31.9 2,131 1,779 4,305 140,805

5 [P] FACEBOOK.COM 8,996 28.2 2,166 1,889 4,142 151,155

6 [E] MSN.COM 22,631 70.9 6,711 2,304 2,428 412,578

7 [E] LIVE.COM 21,961 68.8 7,078 766 1,945 437,105

8 [M] YOUTUBE.COM 15,610 48.9 2,550 1,782 1,939 122,578

9 [E] YAHOO.CO.UK 14,757 46.2 3,744 1,074 1,913 254,980

10 [E] HOTMAIL.COM 16,041 50.3 4,558 2,005 1,819 260,103

...to 21 Billion Pageviews!*Source: comScore Media Metrix August - 2007

The MySpace Generation

The Rise of Social Networking: Filling Needs

A User’s Profile Can Be Thought of As a Metaphor to Their Room or Apartment

The Profile Has Become A User’s Online Persona

This is the First Internet Generation….They Have:Grown Up Sharing Their Lives OnlineGrown Up With Cell-PhonesGrown Up With 100’s of TV ChoicesGrown Up Owning Their Media Experiences

TIVO, Ipod, Pro-Tools, etc.

A Place to Connect, Discover, Express

Online Self-Expression Has Been Evolving for 10+ YearsPersonalized Web Pages (GeoCities)Blogs & Wikis (Blogger, Wikipedia)Photo Sharing (Snapfish, Ofoto, Shutterfly)

A User’s Profile Can Be Thought of As a Metaphor to Their Room or Apartment

The Profile Has Become A User’s Online Persona

This is the First Internet Generation….They Have:Grown Up Sharing Their Lives OnlineGrown Up With Cell-PhonesGrown Up With 100’s of TV ChoicesGrown Up Owning Their Media Experiences

TIVO, Ipod, Pro-Tools, etc.

A Place to Connect, Discover, Express

Online Self-Expression Has Been Evolving for 10+ YearsPersonalized Web Pages (GeoCities)Blogs & Wikis (Blogger, Wikipedia)Photo Sharing (Snapfish, Ofoto, Shutterfly)

MySpace is their space…

Never Ending Friending

400 Million social network users worldwide

Social networking sites maintain top placements almost every European territory

86% of UK 15-34 year olds are now on social networking sites

4.3 Billion monthly UK page views on MySpace

Reasons for quick category growth and heavy usage patterns Is the “media landscape” being effected?

What ways, if any, SN usage enhances users’ daily lives?

Facts

Questions

Rationale

Key Findings

• Social network sites build deep emotional connections– Breeds sense of ownership unique vs. other sites– An online destination demanding constant updating– Deepens existing relationships more so than creates new ones

• Making over life and media– SN overtaking TV both in hours and preferences– Especially strong in prime time!– Video substitution taking place

• Clear usage evolution– Longer tenure = greater commitment, involvement, brand interaction– More than just teens and young adults: growing strength among 25+

The Rise of Social Networking: Filling Needs

Life with MySpace Life without MySpace

Briana, 27, New York

Enhancing Life Offline

Social networking experience

“If you’re not on there, you’re missing out on something in your real life.”

“MySpace is My Life.”

I am never bored when using social networking sites

There are just so many things to do

The site adds fun to going out

I’ve been having more fun in life in general

I’ve been more plugged into the music scene

I’ve felt more on top of trends and what’s new

It makes my life more exciting

I’ve discovered brands and products that I really like

73%

66%

56%

48%

47%

46%

45%

40%Base: Social networking users, ages 14-34 (2,605)

2

3.2

3.6

4.6

11.5

8.7

2.5

2.7

4.8

5.1

9.4

11

Playing consolegames

Readingmagazines

Listening toMP3s

Talking on cellphone

Watching TV

Going online

SN users

Non-SN users

Weekly hours spent…

SN users more engaged

Q: During the past week, approximately how many hours did you spend doing the following activities?Base = SN users 14-40; n=2,605 non-users 14-34; n=431

Social Networking: Altering the Media Mix

Building A Network Within A Network

How it Works

Brand Networking

Amplification of

MessageThe Power of A Social Networking

Dialogue….

Direct Brand

Interaction

MySpace Users Connect and Engage With Brands

Permission Attention Span High Value Touch Point

9,500+ friends

14,000+ friends

70,000+ friends

A New Social Currency Emerges

Reward Participation

Enrich the Experience

MOMENTUM EFFECT SUMMARY• The New Value Creation Model Is Captured In Social Media

– Before, most online evaluation models only looked at the B2C advertising value– B2C + C2C = Value Creation– The C2C (pass-along effect, consumer to consumer) generated over 70% of the total ROI

• The ROI From Advertising On MySpace Is Competitive– The average cost to influence each person on purchase intent is stronger than most

online properties

Rex’s Profile – after adidasRex’s Profile – before adidas

Source: NEF study, April 2007, commissioned by myspace, isobar and carat Source: momentum effect research conducted by marketing evolution

Momentum Effect Summary

From broadcast....

...to Viral

Implications for Brands and Agencies

• Social networking = influence– Influence greatest among friend groups– Only social networking—beyond digital music, cell phones, video gaming,

media—is by its nature populated and defined by friends– The most powerful potential commercial environment today!

• Social networking must be in the media mix– 86% of the UK’s 15-34 year olds use SN apps, with deep emotional bonds

• Friending is the new advertising.– Want a company to advertise to me? No. Want them to be my friend? YES!

• Create an ongoing relationship.– It’s more than about a single home-page campaign: it’s about being a friend

on their page, a constant presence. Maximize this unique environment!– Personify your brand or product. Make yourself friendable.

Thank You

jay@myspace.com