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ENTREPRENEURSHIP CASE
RACY PLACE MYSPACE MAKES BIG-TIME ADVERTISERS WARY
Estefania Botero
Felipe Botero
Karen Ramirez
Laura Giraldo
SUMMARY
In 1999 Myspace started to attract websurfers in big amount. Thousands of people register every day, and even millions every month.
The amazing growth of Myspace overcame the growth of giants such as Yahoo! And Google, in fact Myspacein the first 30 months claimed about half the reach that those monsters enjoy.
Myspace was sold to Rupert Murdoch News Inc for 580 million USD, much less to what the company could have sold for.What leads to think that Myspace as a website and social network is a "hot property", the problem is that it has no clear revenue generated model
This networking site it’s about keeping in touchwith friends, with photos, music, posts in each other profiles, social events and so on. Many things in Myspace are uncensored, like massages that people post or photos, the only thing they reallymonitor Is hate speech. However in 2005 controversy about this came out, because two sexual predators were convicted because they were trolling Myspace’s public pages.
Music groups also use Myspace topromote their music and to have a close relation with their fans, as Foo Fighters did by allowing their new album to air free on Myspace before the official release. The site also holds unique videos,blog listing, events listings, classifieds, and those personal pages and music samples.
They claim they are making millions of dollars in advertising but expert’s opinion is that they could bemaking a lot more. Clients don’t really like the idea of placing advertisements of their products in an environment where they have little control over what appears besides them.
Myspace is the 5thlargest company on the Internet and its going to be attractive to many people, like HSBC, Aquafina etc, that have bought ad space in Myspace, and like them many will follow.
ANSWERS
1. Do you...
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