Forbes nails the joint MySpace-Isobar study to the wall. More paper was published on this study then necessary. I think more trees paid the ultimate price due to this paper. While I sit here and play the jester, Forbes played the King and slammed home some key points.
“When we factor in the momentum effect, the return on investment for social networking is among the best we have ever measured and it requires us to suggest that more brands should conduct this research,” the report reads.
ROI, it’s a favorite phrase by the business types. They say that all this friending is what is causing the advertising industry to be swooned by this misleading number. It is a misleading number, and a misleading statement.
The study, cornerstone of a daylong MySpace-hosted event Monday for an exclusive group of marketing executives at the Beverly Wilshire hotel, also serves as a plug to those marketers to bet their dollars on MySpace banner ads and fancy profiles. The event comes just weeks before many of those marketers begin planning their advertising budgets based on the television upfront season. Spare a bigger chunk for MySpace this time around, won’t you?
The true reason always surfaces to the top, and we all know why they created the hype on this study. I don’t quite blame them, as to make that reported $30-60 million,
MySpace generates more than $30 million a month in revenue, and that will double to $60 million a month by early 2008
, there will have to be a lot of advertising dollars spent each month.
The final thought, is one that should be read. Remember, MySpace did this survey or study:
However, the independent researchers who conducted the study admit it might be useful for other companies to test the hypothesis.
Technically Speaking, that is called the “fine print”, as in “your mileage may vary by usage” – the key sticking point – you have to use it to be successful. I see strong competition in the coming months, and I will say this much, at least there is a marketing department worth saving at MySpace.
The MySpace marketing team know they need to sell now while the stock is high. Facebook is licking at their heels, and new startups such as Vertagio are in a fast pack of cleaned up social networks right behind Facebook.
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