Myspace

It wouldn’t be possible to write a  blog about advertising and not mention Myspace.  Here are just a few of the current facts about the site:

• Myspace accounts for 4.46% of all internet traffic and 80% of all social networking traffic (Reuters, July 11, 2006)
• Newscorp (owner of Myspace) is hosting a summitthis week in Pebble Beach.  Bono, Bill Clinton, Tony Blair, Al Gore, John McCain and many other dignitaries will speak to top Newscorp management and investors.  The only non-celebrity hosted panel will be a panel hosted by Myspace users discussing their generation and Myspace.
• Myspace’s revenue is expected to be $1 billion by 2010, compared to the $47 million it made in 2005.

Taking a look at the advertising potential of Myspace, I’d argue that there are 3 different types of distribution via Myspace:

Banner / Pay per click: According to the Hollywood Reporter, this currently accounts for 80% of the site’s revenue.  Additionally, the article states that of Myspaces home site advertising, there is a 17% retention rate for advertisements, which bests that of Yahoo advertisers.  The article states that there are no plans for drastic changes to banner ads. 

Myspace accounts:  The site allows revenue generating entities  such as movies, restaurants, nightclubs, tattoo shops, computer repair, mortgage brokers, and even a couple law firmsto create their own Myspace account for free.  Many of the users of Myspace will ask these businesses to be their “friends” which will then place that company’s logo on the consumer’s personal Myspace page.  It’s not uncommon for a user to have Nine Inch Nails, the show Entourage, or a bar as a friend. 

Consider that all of the traffic to and from that businesses’ website is free (not including the costs of designing the page).  Not only is the content designed, edited, and managed by the business, but it is also delivered in one of the most popular mediums, to the demographic they desire the most: 15-34 year olds with disposable income. 

Word-of-mouth: If I were to call a friend of mine today and tell him that I just picked up a new CD and loved it, it would be a two-way conversation about which only he and I would know.  With Myspace, if I wrote him a public comment that I loved the new CD, anyone using myspace would be privy to the same opinion. 

Let’s take a student body president, a high school quarterback, or a sponsored snowboarder.  Then, let’s bring in an energy drink, local boutique, or maybe a computer brand, or a new car aimed at this demographic.  Put together the “popular” Myspace user, the product, and the distribution medium of Myspace and you now have one of the best word-of-mouth scenarios one could want. 

The Financial Times recently wrote about the coming change of media buying and how important word-of-mouth and Myspace really are.  The blog B2B International posted the article.

My thoughts:  I am not a Myspace user, but after reading some of the articles I used for this post, I am a believer in it’s value and place in advertising.  The biggest takeaway is recognizing how connected my generation is and the advertising potential that lies with it.  In seeing how much we use Myspace, any advertiser who ignores it or the other social networking websites is a complete idiot and will be looking for work very soon.

I also think that small businesses, especially bars, restaurants, retail stores and clubs should use the service.  It is virtually a free way to have a web presence and it would be right where there target market can be caught.  It also creates that virtual sense of community for the business.  As recognized by Myspace’s success, our generation definitely appreciates and values that virtual community. 

Director Focus: Michel Gondry

I’m just learning about Michel Gondry via the Directors Label discs. He has some amazing music videos, my favorite being Star Guitar, by The Chemical Brothers (it reminds me of traveling in Europe and listening to Moby: Play). Watching this online does not do it justice.

Gondry also directed Eternal Sunshine of the Spotless Mind, the White Stripes’ Lego video (Fell in Love with a Girl), and most recently Dave Chappelle’s Block Party.

In 1994, Gondry did this commercial for Levi’s. I do not remember ever seeing it, but they likely we not airing it during Saved by the Bell. Amazing cinematography, use of color contrast, and capture of human emotion (as evidenced by the people in the store). Great spot.

Quick hit advertising rundown

City National Bank / Print / Tagline: “Hustle is Capital” – This California based bank ran this as a billboard in Oakland near the Bay Bridge. I like this tagline for a bank and I liked the billboard. What was interesting was finding young people use this as a tagline or a posting on myspace.

Toyota Scion / Print / Tagline: “So Wrong for So Many” - I liked this for a couple of different reasons. It continues to differentiate the Scion as a younger generation’s car and it once again shows the individualistic / customization options for the car.  Sorry, I can’t find the creative.

Hyundai / Television / Tagline: “Rethink Everything” – The ad shows a gazelle chasing a lion and then taking it down. It asks us to rethink everything. I have a major problem with the ad. I like the message, the artistic quality, and the unique idea; however,  they could have made one simple decision that would have let this sit better with me. There was no need to use the gazelle for this, it looks too similar to an impala. In turn, I watch the commercial and see a powerful impala and quickly assume that it is a commercial for the Chevy Impala, which was just redesigned for 2006. All they needed to do was pick another animal. Would have been that easy.

Successful radio advertisement for Volvo / Horrible local advertisement for GM

There is a guy in San Francisco who does television spots for hisGM dealership. He’s an old pudgy guy who talks very loud and is annoying. In a classic example of being ill-advised, the man’s last commercial shows him in a black leather coat wearing Ray Ban knock-offs holding a shotgun. Two moderately unatractive ladies flank his sides in moderately ugly black cocktail dresses. Pudgy man ends the commercial by cocking the shotgun and proclaiming “We are Professional Grade.” Hardly.

The point I am getting at is in reference to local advertisers running with a national brand. The car lots do it quite a bit, usually with little success. What’s unfortunate is that corporate spends millions of dollars to create an identity for bilion dollar businesses, only to let non-marketing savy people send a message out to the general audience. For one, it devalues the brand, and secondly, it destroys the hard work the brand managers have put into the overall branding.

There is an association of San Francisco Volvo dealers who just started running radio spots that are unique and catch the listener’s attention. The premise is that a good story is worth listening to and sometimes you never want it to end. And it follows that being safe in a Volvo will help extend the story. The radio spot starts telling the story, but does not finish it. To hear the rest of the story, listenters must go to the association’s website. What they did with the spot was take something we all think of when we think Volvo: Safety, and then asked the listeners to followup by going to the website. The site is clean, professional, and the stories are actually pretty good (maybe a little long). The narrators of the stories online and on the radio are great. For once, I was surpised to see a local car advertisement that didn’t damage the brand, but uniquely used it. It’s too bad that for every one like this, we’ve got pudgy man with his shotgun.

Another ad with pretty females for a body spray in a black container…

but this one might just be the best of them yet. The production value alone differentiates this from all of the others. Who would have thought that CGI would ever be used for a deoderant commercial?

Again though, I question, how are these brands differentiating themselves from the competition?