Back in 2005, Rupert Murdochs News Corp bought Myspace for $580 million. Back then, just 6 years ago, Myspace was the clear social media boss of the Internet. No-one came a close second, even social network and online dating heavy-weights such as Friendstar and Friends United had less than half the combined following compared to Myspace. Myspace was so far ahead of its competitors and was the darling of journalists from around cyberspace via style magazines and media press.
so it seems as though Myspace has fallen, but has it? A serious of surveys into social networking and Internet search technologies has named Myspace in the top 5 most recognized Internet brands in the world. Even though Myspace is showing significant signs of failing, perhaps its simply failing to thrive, but why?
Building brand recognition is one of the most difficult challenges any business will face. But Myspace already has this. Market research and consumer behaviour indicates that the decline of Myspace is largely due to our perception rather than reality. By simply removing various cosmetic options and design templates offered by Myspace, and replacing it with a single universal recognized template, Facebook was able to snatch the crown in dramatic style.
Even though the number of Internet users is increasing, traffic to Myspace is still in decline. Efforts to court Internet users back to Myspace have failed and analysts projected Myspace has lost $150 million in attempts to resurrect its dominance. Over 80% of income generated by Myspace comes from pay-per-click advertising.
Wall street has published a report recently, speculating that Myspace has been re-sold for $35 million dollars plus an undisclosed number of shares. Since the likes of Facebook, Twitter and Linked-In have taken the reigns in the social media spotlight, Myspace has since repositioned within the market gearing towards the entertainment side of the News Corp Empire.
The further integration of software applications into the Facebook mix has only solidified consumer dependence on the Facebook brand. Music apps, online dating apps and online games have played a significant role in sending Myspace into further seclusion. The social and dating element of social networking is now part of the Internet culture as we know it.
In a 5 year deal, Google has agreed to provide search and ad technology to the now social drop-out. Even still, the annual $900 million in revenue fell 21% short of the same period in the previous year, whilst Facebook revenue continues to surge with a whopping 39% increase in revenue in 2010.
Specific Media, the new owners of Myspace, say they plan on rolling out changes that Fox failed to implement, and have already done deals with the likes of Justin Timberlake in a bid to bring the attention of media spotlight.
Matt Fuller is the contributing author: Matt writes about subjects of interest regarding Internet technology, dating sites Australia reviews, social media news releases, dating advice and free online dating sites tips and relationships guidance.
Similar Posts:
- Security Consultant Shows Facebook Vulnerability to Identity Thieves
- Social Security Card Replacement
- Application Procedure for Internet Bad Credit Auto Loans
- Community Organization Acorn Files For Chapter 7 Bankruptcy
- Read More Information About Credit Repair Companies in Blog Publication
no comment until now