Rapid Graffiti

Here’s a mail i got from P

1. you may not be visiting ads, but find statistics and you’ll find
that more novice the user, more is the possibility of clicking so you
are actually not a correct representation of average user.

2. need to consider possibility of usage of this data in future – i
know you cant spend heavy bucks on this but somehow i always see this
as a rich information resource that will serve as a great repository
for future marketing gimmicks. I know anyone can attack me on this
point – its not logical – its going by gut feelin..

Here my reply, n more gyaan on SN…

1. I guess ur view point about novices visitng the links might be correct. 

2. Yahoo and MSN are already using this data.  When u visit their sites, i.e yahoo 360, the SN site of yahoo, and MSN space, the cookie is stored in your comp, and the data is subsequently used by these sites for obvious reasons.  google mite try the same with orkut.  i wud not be surprised to find orkut being re-directed to orkut.google.com, and hence establishing a common cookie for the visitors.  y! already does this. 

3, these sites are increasingly used by HR ppl for due diligence. 

4. wat i’m wondering is that is SN a fad, or is it gonna be an integral part of our virtual existence, just like the instant messaging systems.

5. i also see a lot of possibilites of integration.  u have just one window to open, it includes ur mail, ur SN site, ur blog, ur online applications like spreadsheets, groups, etc. etc.  this cud be one way to makin the users stick to u, and make urself indespensable…

6. myspace is selling music to make money.  y wud i buy music from myspace?

7. ad reveunes from myspace is gonna be more than 900 million dollars in the next 4-5 yrs.

Term 4 ended yesterday.  I’m done with all the submissions, papers, presentations and report.  Would be leaving for Bombay tonight, and then to Ahmedabad on 30th  September.  As I write this, the other sites open on my system include gmail and orkut.  Btw, orkut is a social networking site, a part of google.

Social networking (SN) sites are on the watch list.  News Corp. acquired Myspace, the most popular social networking site.  Facebook is another popular networking place.  Orkut is way behind.  Sometimes I wonder what would be the business model of these sites?  Are ad revenues enough to sustain?

Myspace signed a deal with google where the latter would sell myspace’s ad space.  The deal is worth around $800 mn.  But is it worth spending for ads in a social networking site?  There are millions of users spending lots of hours on myspace and orkut.  85% of college students are registered on facebook.  People visit there to socialize, and find old friends.  A typical SN site collects a lot of data about the user, and hence would know about her tastes and preference.  You can segment the users on the parameters of your choice.  You can place dynamic ads that change with the target.  You can also track user’s activities and find out more about her.  So, logic says that it is worth spending on ads on these SN sites. 

But I have my own doubts.  Why would I click on ads? I mean why?  I’ve used google search for a million times but have clicked on an ad just once.  I probably do not even look at the ad.  Why would I?  Moreover, 61.38% users on orkut fall in the age group of 18-25.  Facebook is targeted at university students, and myspace wants to position itself as a hang out place for youth.  What’s the purchasing power of these users?  My take is students and Uni students would not click on an ad or a banner unless it is free or highly innovative stuff.

So what’s the future of SN sites? Well, some old sites like friendster, etc. have started focusing on working youth with reasonable disposable income.  Some have started focusing on niche areas.  The latest is dogster which focuses on user’s pet.  Not that this would ensure their sustainability, but they’re surely trying something new.  For the regular SN sites, their fate might be same as instant messengers; only the early movers and the biggies would survive.  Yahoo, MSN, icq, are surviving, I don’t see indiatimes messenger or rediff bol anywhere. 

Watever happens, m still gonna spend my daily hour finding friends on orkut.