Presented at the Accenture Global Convergence Forum 2007 by Michael Barrett, Executive Vice President, Chief Revenue Office, Fox Interactive Media   The rapid success of MySpace has had a dramatic impact on the way that marketers have to define and interact with their customers. But more than that, it should signal a significant shift in thinking for all media businesses as they build and develop their online strategy, said Michael Barrett, Executive Vice President and Chief Revenue Officer of Fox Interactive.
Social networking, said Barrett, is but the latest in a long-observed trend that has seen young adults switch their allegiance and use from one medium to another, as has been seen before with the move from print to TV. Understanding why and how that audience has changed has meant researching how developments in both technology and the audience have led to the massive growth and influence of social networking. Changing Needs and Capabilities A number of technology trends have propelled the rise of MySpace. The development of Web 2.0 - services and software as the driver for web use, rather than sites as destinations in themselves- has been critical. Broadband penetration has reached a tipping point so that uploading and sharing content is both easy and fast. Ubiquity of digital cameras and camera phones makes creating pictures and video simple for all users and drives the need to share this new digital content In conjunction with rapid developments in technology, changing audience characteristics have coalesced to push the massive success of MySpace and other social networking sites. Principally, the internet generation audience wants to discover new things for themselves and then share their discoveries. This 'Me to We' generation wants to connect and share with its peers, creating its own content and experiences in an online world that operates beyond traditional boundaries. In addition, explained Barrett, there is a fundamentally human desire to be part of a community, a need that is answered with the ability MySpace delivers to add constantly to lists of friends who share common interests and to in turn be connected to their similarly-approved and like-minded friends. More than 162 million global profiles are registered on MySpace and the site has nearly 100 million unique monthly visits. What draws people to the MySpace platform, said Barrett, revolves around three fundamental abilities it delivers: - Self Expression: the ability to create a personal profile with pictures, video, blogs and other forms of unique personalisation
- Discovery: both providing the ability to discover others and to be discovered
- Interaction: Users interact through a wide range of channels, from 'friending', IM, and events, to blogs, virals and posting comments on others' profiles.
What these elements add up to is a rich interactive environment which, according to Barrett, has the dual characteristics of both a close-knit neighbourhood and a truly global community. It is a world that is characterised by dialogue and interaction and one in which, by and large, users make their own rules. For marketers to address this audience effectively requires them to adopt a whole new approach. New Models for New Markets Traditional, top-down dissemination of a message through a range of media won't work in this environment, said Barrett. Instead, brand owners need to interpose themselves into a dialogue and engage on the same terms and with the permission of the audience they want to reach. If they do this well they can quickly discover a new level of engagement, with individuals actively engaged in representing and promoting the brands that they like. Businesses such as Warner Brothers and General Motors have started to explore the possibilities of working with MySpace users to promote their brands through their online social networks. They do this by addressing relevant incentives and services – ranging from enhanced user privileges (such as the ability upload more photos than normally allowed) to cash rewards- to individuals who, through the power of the social network will connect positive brand messages to a broad section of the right audience. And as the MySpace community develops, more and more opportunities arise with it. Members wishing to buy and sell from each other are creating a demand for commerce platforms and tools. New music and film production is increasingly using MySpace as the distribution platform of choice, enabling bands to connect with and sell their content to a loyal fanbase. According to Barrett, MySpace succeeds because it makes it easy for members to do what they want. For large media and communications businesses today its success can provide lessons and warnings too. Scale will no longer guarantee success. Understanding the need for constant innovation is critical. Barrett closed with the apposite words of News Corporation's chairman Rupert Murdoch who said, "The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow." Next: Speaker Bio |