Rhys Blakely
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Social networks are spawning a generation of internet tarts, research suggests: online consumers with little brand loyalty and no qualms about keeping several sites on the go at once.
Users of social networking sites such as MySpace and Facebook are “chronically unfaithful”, a survey by Parks Associates, the analysts, has found. Half of users regularly use more than one site, most of which are free. One in six actively uses three or more.
This phenomenon of “network promiscuity” extends across web commerce. Analysts say that it is symptomatic of a new consumer scepticism over traditional branding.
Robert Jones, of Wolff Olins, the brand consultants, says: “Grand operatic brands no longer work. Think of the ultimate model ‘old brand’ – the Marlboro man, a myth selling you an item that slowly killed you. It just doesn’t work online. As people become better informed, brands become less about emotion and more about functionality.”
User infidelity in the social networking sector, made up of about 300 competing sites, is challenging once-accepted dot-com maxims, such as the importance of first-mover advantage and the strengths implicit in scale.
It also raises doubts over the surging valuations being attached to the sector’s “superbrands”, amid evidence that they will be forced to evolve constantly to retain young users determined to play the field.
Akready, warning signs have emerged: the latest figures from Nielsen//NetRatings showed that MySpace, the market leader, recently lost users in Britain.
The dip coincided with the news that News Corporation, the MySpace owner, had held early talks with Yahoo! over a possible sale of the network that could have valued MySpace at more than $10 billion (£5 billion). News Corp is the parent company of The Times.
The number of British visitors to MySpace dipped to 6.5 million in May, from 6.8 million in April. The fall, which comes as Facebook, its rival, experiences a huge surge in visitors, was the first to hit MySpace since it signed a deal with Google last summer, under which the social network stands to reap about $900 million in advertising revenues. It was only the second dip since News Corp bought MySpace for $580 million two years ago.
MySpace has achieved the traffic targets underpinning its deal with Google with ease, but, according to Nielsen, over the past six months Facebook’s audience in the UK has grown at 19 times the rate of MySpace’s, surging 523 per cent to 3.2 million.
Alex Burmaster, a Nielsen analyst, said: “MySpace is, by far, still the most popular social network. However, if last month’s growth rates were to remain consistent . . . Facebook would catch MySpace in September.”
The pattern was repeated in the United States, MySpace’s largest market, where traffic to the site fell to 56.6 million in May, from 57 million a month earlier.
MySpace has pointed out that traffic figures from different research firms differ, but admits that it will have to evolve new content and tools to remain relevant. It also takes issue with the idea that switching between free sites involves no cost to users.
“MySpace users invest huge amounts of time building up their profiles as part of our community. That means they are massively loyal,” a spokesman said.
Yet the Nielsen figures confirm that network promiscuity is a factor, showing that 444,000 Britons visited all three of the leading rivals – MySpace, Facebook and Bebo – in May.
Even the biggest internet brands – of which Google is the leader – may not be immune to the digital generation’s lack of loyalty, analysts say. The eight-year-old search engine was judged to be the fourteenth-biggest global brand last year by Interbrand, the consultants. It was the biggest riser in a top 50 of which half are more than 50 years old.
Rita Clifton, the chairman of Interbrand, said: “The internet has allowed a brand-building process that would have once taken decades to be achieved in a fraction of that. There is a downside, of course: what goes up quickly can descend just as fast.”
The dangers are illustrated by the fate of Friendster. The social network accrued more than 20 million users after its launch in 2003. Late last year that figure had fallen to less than one million as users migrated to sites with better music and video tools.
There are also suggestions that, while the internet makes the world a smaller, “flatter” place, personal online services do not suit traditional global branding campaigns.
Mr Jones said: “McDonald’s can have the same golden arches in every city, but social networking is a very personal thing and is susceptible to cultural differences. Using one of these sites does not bear comparison with eating a hamburger.” Already, Google has been forced to change its brand in China to “Gu Ge”. Despite the switch, the search engine trails local rivals by a huge margin.
Orkut, the social networking site run by Google, has gained about 50 million users, but despite its massive popularity in Brazil, it remains little known in America and Britain.
Mindful of the hurdles facing them, sites are already making moves aimed at winning and locking in users. MySpace, which has been criticised for failing to innovate, sought to reinvigorate its user base last week when it announced the launch of a new video-sharing service. MySpaceTV will compete with YouTube, owned by Google. Last month Facebook launched a new platform that allows outside developers to create free and paid-for online services that can offered to users.
Park Associates says that the mercurial behaviour of social net-workers could open opportunities for new sites and developers who build software that links different networks. User infidelity need not spell the end for social networking superbrands, it suggests.
John Barrett, who led the group’s research, said: “MySpace is a growing ecosystem and one that, ironically, now extends beyond MySpace itself.”
Social services
MySpace 6.5 million UK users, up 28 per cent in six months. Average time spent on site by user in a month: 96 minutes
Bebo 4 million UK users, up 49 per cent in six months. Average time by user in a month: 152 minutes
Facebook 3.2 million UK users, up 523 per cent in six months. Average time by user in a month: 143 minutes Source: Nielsen//NetRatings
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The Internet and web surfing is fine but dont make the mistake I made and that was to fall for a scam which lasted nearly four months. You can get hurt emotionally and financially, dont let love blind you. The person individual in
question resides in Yahoo.comm I can supply email if required
I can supply details also on how she did this.
So beware there are unscrupulous people out there.
A.C.Pestell, london, england
Great article, because it reveals the collision between a "top-down", corporate view of what consumers want, and how consumers are in fact using the internet to seize control of their lives. Giving individuals the power to choose and create the features they want is part of keeping more of them on your sites. But, as the article demonstrates, it is also important that we feel, as well as remain, in control. Plunging faith in traditional institutions makes it suicidal for any internet business to behave or present itself as one, whether through branding, rule changes that have no benefit to the consumer, or acquisition by a corporation that has the hallmarks of an institution.
But this trend goes beyond retailing, networking and entertainment. Citizens are using the internet to resolve wider political and social issues. On 25 June, the Cabinet Office said it would start helping citizens to use public sector data as they wished. Let us hope that policy might be shaped the same way.
Simon Deane-Johns, London,
Saying you can only belong to one social network is like saying you can only join one club or only contribute to one blog. Isn't the very nature of the Internet that you have the freedom of choice and the freedom of expression (within reason obviously!). In fact, with the rising popularity of "Second Life" and the like, the freedom to do pretty much anything you like.
What Parker and Nielson would have us believe is that what they term 'Internet promiscuity' and 'Internet tarts' is akin to the problem of consumers who move from credit card to credit card as soon as the interest rate rises. My belief is that the two things are completely different. In the case of social networking sites, this does not make the consumer fickle or disloyal, but is symptomatic of how much choice exists in modern society as a whole. As long as the number of choices available continues to grow, so will the freedom to choose, and (one would hope) the acceptance of this.
Suzanne, London,
This is all rubbish. The reason MySpace is losing users is because of significant security issues resulting in (amongst other things) massive amounts of SPAM comments all over the site.
Colin McClenahan, Vancouver,
This is about...
Ideas that start out good - and then go corporate...
Independent minds are making their 'voices' heard. What starts out as an intimate, close-knit community and begins to take-off like a rocket, quickly jumps on the radar screen of $$$$$$$$$$$$$$$$$$$...
Once the 'corporate' culture steps in with the 'buyout' and the ensuing new 'rules' take place, the intimacy is gone. Forever.
You want an answer?
Craigslist...
CC, Santa Clarita, Ca
this is not a new issue. in fact, this promiscuity suggests that brands today are not about functionality, but about a more than ever personal relationship. for further reading, please see "Promiscuous Customers: Invisible Brands - Delivering Value in Digital Markets"
by Michael Bayler and David Stoughton
ayala, london,