Monday, February 20, 2006

MySpace's Achilles Heel(s)

There are very few computer-savvy individuals out there today that have yet to hear (let alone join) MySpace, the most popular social networking (and also roughly 10th most popular) site in the entire World, as per Alexa's Global Top 500 today. Throughout the business world, social networking has been on the rise for years, but it has only been in the past year or two that the 'MySpace phenomena" has skyrocketed straight to the top of the "it" charts. Yes, MySpace has tremendous appeal, which by sheer page views alone makes it an extremely valuable internet property, as evidenced for example, by the $580 million or so Rupert Murdoch's News Corp ponied up for it last year.

So what then, if anything, could possibly topple this mighty beast? The answer is that there likely isn't any one thing that could stop this new media powerhouse in its tracks. However there are several things which many observers and likely analysts as well might have missed.

I have been a member of MySpace personally for about a year or two, but in the past few months I've really been exploring everything the service has to offer. I have a few observations as to why MySpace is, and is not at the same time an amazing idea, for example:

  1. Part of the allure of MySpace is the widespread availability of page-editing software, which lets users construct relatively complex profile pages without having to know a shred of HTML, flash, java, etc. The beauty of this is that giving users control over the design, display, as well as simply content of their 'myspaces', so-to-speak, brings users closer to the service, and it brings those users' "friends" on the site even closer to each other. To clarify, what I mean is that the way the site is designed allows/results in not just more active users, but users who are ever-more active, more of the time. Just to note, I'm not aware of any published numbers on click-through rates or other metrics for said ads, so simply using page-views, MySpace is definitely on the right track. On the other hand, as a MySpace member, and as a member of the target demographic of many internet advertisers, I can attest to the fact that a significant portion of my generation (at least the internet savvy ones) are often unresponsive to many (not all) web advertisements. With MySpace, this is especially true I'd imagine, since after a short while you know exactly when and where ads will appear, and basically ignore them almost subconsciously. It is partly a result of how MySpace is designed, that you almost ignore the ads, because you are so preoccupied with all of the content and interaction which the site enables and provides. I'm not at all saying internet advertising is a waste, the truth is after all quite the contrary, I’m just trying to point out something that perhaps might be lost amidst all the hype and hoopla.
  2. While MySpace may be thriving the site does in fact have some shortcomings which I fear might be widely ignored. For example, by ceding so much control over personal profiles to individual users, MySpace has lost the ability to consistently deliver a quality user experience. Now I've only tried this using my 15" widescreen laptop monitor, but many users' pages are too wide to be fit the browser window. Also, many users choose to place rich media, such as mp3 audio, mpeg/QuickTime video, or flash animations in their profiles. This, when taken together with the extreme latency and pathetic server reliability (we're talking NOWHERE close to five 9's) results in what is often an annoying user experience, to say the least. The fundamental issue at hand then for MySpace management is to find a balance between giving users the control they want and the quality experience that keeps them coming back. Also, as I just noted, MySpace DESPERATELY needs to upgrade its servers to accommodate demand. Few firms have developed a successful web presence without designing robust, scalable systems from day one. Now I may not be peering into a crystal ball or able to read the stars, but I'm going to go out on a limb and say that MySpace might not have what it takes to prove that trend wrong.
  3. In my experiences, it seems that perhaps a majority of activity on MySpace is generated by a relative minority of users. I have several 'friends' who post bulletins, blog posts, photos, comments on other user's photos/pages, etc on a daily basis. (While it is beyond the scope or intent of this blog, some people I've met both in person and on MySpace sometimes seem to have more of a social life online than in reality, but I digress...) These people collectively also represent probably no more than 30% of my friends. While I'm sure this sample might not present an accurate representation of the greater MySpace population, I think it is still indicative of a larger trend none-the-less. If such is the case, then the value of each incremental user, on the average is less than perhaps previously thought.
  4. A few short weeks ago I began getting inundated with spam messages in my MySpace inbox. Some messages appear to be from legitimate people, but attempt to convince the recipient to go to some other site, or even worse, informing you that that you have been pre-approved for a large low-rate loan and should click on a hyperlink to receive their money. Upon further investigation, I've determined that, just as with email, anonymous users are able to create what are basically fake profiles. Then, because of the extreme ease of finding targets for their spam, they represent themselves as legitimate people trying to often do you a favor or tell you about this great other website. As far as I know, MySpace uses no verification during the profile/account set-up process. This could potentially allow users with slightly less than honorable intentions to overrun (in the most extreme case) the site. Another possibility about which I've just today been informed is that unscrupulous users are using MySpace to deliver viruses and other malware. I have yet to confirm (I started this post 40 minutes after reading about this!) but my first inclination is that the distribution of such malware through MySpace is similar to the spoofing, phishing, etc which has become so widespread with regular email. In much the same way some viruses or Trojans, once they've infected your machine, spread to everyone in your contacts list, the same thing is at least theoretically possible with MySpace. Once one 'friend' gets infected, hackers and other malcontents could use the social network to distribute malicious code to unknown numbers. Perhaps I may be overstating the problem here, but until I'm proven wrong, I'll maintain the above as a legitimate possibility.

While this post might present a seriously cynical view of the leader in social networking, I'll be the first to admit that barring some heinous viral outbreak or something in the immediate future, MySpace is not going away anytime soon.

4 Comments:

Blogger yell said...

i agree.

myspace retards fill out boring surveys and post them as bulletins. bulletins are for important things. no one cares what the last thing you ate was or how long it's been since you cried.

also, some people have no idea how to format, and even if you had a 25 in monitor, shit wouldnt fit.

fuck the tards!

2/22/2006 12:57 PM  
Blogger ERIN said...

click-through rates for internet ads in general are low. while myspace might make a lot of money from selling ad space to businesses, those businesses aren't likely to benefit much from online ads. (at least that's what research suggests, but many companies stubbornly refuse to believe placing an ad on a page that gets a million views a day won't benefit them.) what do you do when you get one of those annoying pop up windows? you've probably already blocked most of them, but the last time you got one... you didn't, by any chance... close the window before you even saw what it was for... did you? that's why online advertising doesn't work. try to recall one ad you've seen on myspace. if you're like most people, you'll have trouble thinking of one. people get used to different web page formats and where the ads are normally located. then they automatically ignore those sections of the page.

2/22/2006 1:58 PM  
Blogger ERIN said...

here's how google is improving the efficiency of online advertising...

Google designed AdWords for advertisers who want to reach a qualified audience as efficiently as possible. Advertisers select their own target keywords and only pay when customers click on their ads. It's easy to create ad text and manage online advertising accounts with no large upfront payment required. All that's needed is five minutes and a credit card. The ads appear across Google's growing roster of partners, including thousands of sites from America Online to the Washington Post, and are targeted to relevant search and content pages.

Google's experienced sales and service team optimize campaigns for our larger advertisers. Our staff of AdWords experts work with advertisers to select the appropriate keywords and generate the matching creative, then carefully monitor the campaign to improve its performance over time by winnowing keywords and rewriting copy based on what is most effective. There's no limit to the number of keywords that an advertiser can select and each keyword can be matched with a different creative execution. Recent advertisers include Amazon, Cisco Systems and Staples.

Google provides all of its advertisers with a full complement of reporting services to enable fine tuning of campaigns and real-time intelligence about which components are performing best. Advertisers can further increase efficiencies by targeting their campaigns to specific geographies or languages.

http://www.google.com/intl/en/corporate/business.html

2/22/2006 7:05 PM  
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7/10/2006 4:00 AM  

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