myspace fall from grace - 2-2011 besegal marketing strategy & analysis
DESCRIPTION
Insights: • Here’s what it looks like when your company fails to listen to your customers; especially in fast-changing technology-based businesses. You lose users to more compelling offerings. • In February 2011 MySpace's visitor-share shrunken to just under 2%; that's a 75% drop from 6% in just the 6 months since October 2010. It's clear changing to a "music" site that month failed to rebuild the critical mass MySpace needs for to survive? Analysis: • MySpace failed to keep pace with the 38% growth in visitation to social media sites, and lost its market to Fb & YouTube. • Overall visits to Top 10 Social Media sites grew about 38% from Feb. 2008 to Sep 2010. (24 percentage points up from 64% to 88%) The biggest changes came at the Top 3 spots of the Top 10. • Most growth came at MySpace’s expense. Its 42%+ visit-share in Feb. 2008 shrunk 8x to 6% by Sept. 2010. During that time, Fb’s visit-share grew 8x from 8% to 61%. (The rising tide also helped YouTube grow visit-share by about 2x from ~8% to 17%.)TRANSCRIPT
* The MySpace Fall From Grace
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How To Read Graph:The chart uses Hitwise'sTop 10 Social MediaSites ranked by thepercentage visit-shareeach site had in a month.For example, the Top 10Social Media sites in Feb. 2008 made up about 65%of the total visit-share tosocial media sites. BySept. 2008 the Top 10 saw about 88% of visits tosocial media sites; a large38% growth in marketshare for the Top 10sites.Source Data: HitwiseAnalysis:• MySpace failed to keep pace with the 38% growth in visitation to social media sites, and lost its market to Fb & YouTube.• Overall visits to Top 10 Social Media sites grew about 38% from Feb. 2008 to Sep 2010. (24 percentage points up from 64% to 88%) The biggest changes came at the Top 3 spots of the Top 10.• Most growth came at MySpace's expense. Its 42%+ visit-share in Feb. 2008 shrunk 8x to 6% by Sept. 2010. During that time, Fb's visit-share grew 8x from 8% to 61%. (The rising tide also helped YouTube grow visit-share by about 2x from ~8% to 17%.)Insights:• Here's what it looks like when your company fails to listen to your customers; especially in fast-changing technology-based businesses. You lose users to more compelling offerings.• In Oct. 2010 we asked "With visitor-share down to 6%, has MySpace lost the critical mass its new music site needs to grow again and survive?" By Jan. 2011 we say "Yes."
Benchmar.. 2008 2009 2010 2011Februa
ry March April May June July August September October
November December January
February March April May June July August September October
November
December January
February March April May July August September October
November December January
February
Top 10VisitedSocial-NetworkingWebsites &Forums
0%10%20%30%40%50%60%70%80%90%100%
Avg. Market S
hare of Visits
11111111111
22222222222
3333333333344444
Av. = 70%
2.5%11111
2222222
111111122222
333333333333
444444Av. = 80%
2.5% 22333333333
11111111111
22222222233
Av. = 88%
2.5% 3
11
22
Av. = 89
2.5%
YouTube, Rank: 3Visit-Share: 10%Facebook, Rank: 2Visit-Share: 14%Facebook, Rank: 1Visit-Share: 61%Numbers in each bar = the Rank in the Top 10 ..
MySpace, Rank: 1Visit-Share: 41%
MyS, Laysoff 47%MySpace's Hard Fall from Grace 2008-2011 WebsiteBeboBlackPlanet.comClub PenguinClassmatesCraig's ListTaggedLinkedinMeeboMocoSpaceMylifemyYearbookTwitterWindows Live HomeYahoo! AnswersYahoo! GroupsYahoo! Member Dir..Yahoo! ProfilesYouTubeFacebookMySpaceTVMySpace