Teenagers Coveted
If you have wondered why Rupert Murdoch spent $580 Million to buy his way into New Media via the acquisition of MySpace, read this.
MySpace has 33 Million users, mostly teenagers. They don’t watch TV. They don’t listen to the Radio. They hardly read. But they hang out in Cyberspace, so to reach them, advertisers would need to meet them in Cyberspace. Ad dollars, hence, migrate online.
And if you are wondering who needs to advertise to teenagers, read this. Amongst others like iPod, fashion brands Juicy Couture & Bebe, marketeers of lipsticks & mascaras, there is this booming new gaming business that positions bang-center into the heart of this market.
With broadband ramping up, sites like MySpace and Facebook gain tremendous traction from the teenagers and young adults segment. A good percentage of GameTap’s (TimeWarner’s new gaming venture) $50 Million advertising budget needs to be channeled creatively into sites like MySpace and Facebook.
Investors worry: Is the MySpace/Facebook trend (self-expression, photo sharing, blogging, chat, making new friends, … online) going to last, or will it go from being a fad to a bomb?
My assessment is that these media properties themselves need to be very creative and create fads. In a quintessential Jobsesque way, rather than following the trends the teens create, marketeers of these sites need to lead their audience from fad to fad.
And if they fail, the next generation of teens will go elsewhere, sending Murdoch’s $580 Million investment down the drain.
Sramana, Myspace and thefacebook, they all lack novel thechnology, the really powerful innovation that will dominate this space soon. If you don’t know what I’m talking about, then find out, early stage VCs! The real power and money is around the corner.
Jeff Cousins
Team@MeetPen.com