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Feb 9 2006
Murdoch Stresses Targeting
News Corp. announced fourth-quarter earnings yesterday. During the earnings call Rupert Murdoch stressed the value of its Internet properties, which has yet to be shown in reported financials. To read into this, the value of MySpace's 50 million dedicated users hasn't been monetized anywhere near its potential.

Our mandate now is clear: to monetize this vast audience with targeted advertising made possible by the wealth of information we have from our engaged, passionate users. The revenue and profit potential from monetizing this audience, even a fraction of it, is significant, he said.

A few questions arise from this: what is the best way to integrate advertising into a user experience that a dedicated, yet possibly fickle (teenage) wildfire&s=search&s3=Search" target="_blank">demographic has gotten very accustomed to? There is a dangerous risk in inferiorating (made-up word) the user experience, while infuriating the user base.

MySpace has proved to be extremely sticky and the barriers to compete are high (users have established networks of friends and sunken investments in their time to create their content-rich MySpace home pages). But anything can happen with a demographic for which viral marketing resonates so well. And new challengers continue to enter the social networking space to share the wealth. It's MySpace's game to lose.

It has been proved by some (Google, Topix) that targeted ads, if targeted enough, aren't seen as intrusive but rather part of the content of a given page. So it will be interesting to see how and if MySpace pulls this off. The degree that local ads play a part in this strategy and what channels FIM will use to bring it all together are also important questions. The company is vague about its plans in this respect but it is interesting to extrapolate its strategy, given the sheer volume of the MySpace user base. We'll be watching this closely.
Blog: Local Media Blog
 
posted by  Mike Boland at  11:32 | permalink | comments [0] | trackbacks [0]



Dec 29 2005
YouTube Blindsides the Video Search Marketplace
Danny Sullivan over at SEW points to YouTube, an entrant in the red-hot video search space. Think of it as the Flickr of video. Users can upload video and search its library of user-generated content. And like Flickr, users can tag and add editorial layers of content to video.

Hitwise (linked through SEW), meanwhile, reports on the growth of the site and of the broader video search space, as well as some demographic data. Interestingly, YouTube has grown the most (in market share) over the past three months compared with Yahoo! video search, Google video search and AOL�s Singingfish (the only one that isn�t growing at all, which is surprising given that AOL has the greatest content assets of the four, and Singingfish has been around the longest).

Look for others�especially Yahoo! which knows the power of user tagging�to consider folksonomy strategies in their video search offerings. And keep an eye on YouTube, as it seems to have come out of nowhere and attracted a young and powerful demographic, among which viral marketing can spread like wildfire. Sound familiar? It might be too soon to tell, but so far it�s reminiscent of another runaway success among this demo: MySpace.

YouTube will certainly remain on our radar screens for the video search space, given its advertising implications as it fits into the broader IPTV ecosystem. Rupert Murdoch and a handful of other acquisition suitors are no doubt intently watching as well.

Blog: Local Media Blog
 
posted by  Mike Boland at  12:10 | permalink | comments [0] | trackbacks [0]










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