Archive for March, 2008

Source eMarketer: The rate of affluent US Internet user participation in online social networks increased dramatically to 60% in January 2008, from 27% in January 2007, according to The Luxury Institute’s latest WealthSurvey “The Wealthy and Web 2.0.”

The study noted that, on average, affluent US Internet users are members of about three onlne social networks and have 110 online connections through these sites.

Online communities are likely to continue fragmenting into selective and specialized entities of like-minded members. This should make it easier to reach target markets, although luxury firms must jump some critical hurdles to get it right.

“The wealthy have a great deal to lose,” Mr. Pedraza said. “They will not tolerate behaviors exhibited recently by social networks that force opt-out techniques on member’s private purchase information, and make it difficult to exit.”

Nearly two-thirds of wealthy consumers say that giving out personal data without permission will cause them to disconnect; 63% have an interest in “do not track” lists.

“The Luxury Institute’s findings suggest that membership in social networks is one of the factors driving the growth in Internet usage among the affluent,” said Paul Verna, senior analyst at eMarketer.

This demographic segment – defined as people with annual household income of $100,000 or above — represents a large and growing percentage of the US Internet population. In 2007, an estimated 25% of US Internet users were affluent, up significantly from 16% in 2001. eMarketer projects that this percentage will increase to 27% in 2011.

Nielsen Online said last year that nearly 30% of Facebook’s users came from households with at least $100,000 in annual income. Comparatively, 22% of MySpace users were from similarly-affluent households.

While Nielsen’s numbers appear to contradict the Luxury Institute’s finding that MySpace commands a higher percentage of affluent Internet users than Facebook, there is no actual discrepancy when one considers that MySpace’s user base is considerably larger than Facebook’s. Hence, 30% of Facebook’s user base is actually a much smaller number than 22% of MySpace’s users.

comScore (NASDAQ: SCOR), a leader in measuring the digital world, today released January 2008 data from the comScore Video Metrix service, revealing that YouTube.com accounted for one-third of the 9.8 billion videos viewed online in the U.S. during the month. The total number of videos viewed in January was down slightly from the more than 10.1 billion viewed during a record-breaking December 2007.

Google Sites Extends Lead in Online Video Market Share

Google Sites once again ranked as the top U.S. video property in January with nearly 3.4 billion videos viewed (34.3 percent share of videos), gaining 1.7 share points versus the previous month. YouTube.com accounted for more than 96 percent of all videos viewed at the property. Fox Interactive Media ranked second with 584 million (6 percent), followed by Yahoo! Sites with 315 million (3.2 percent) and Microsoft Sites with 199 million (2 percent).

*Rankings based on video content sites; excludes video server networks.  Online video includes both streaming and progressive download video.

Source: Compete Blog

Earlier this week, Facebook founder Mark Zuckerburg made Forbes list of the World’s Richest Men. Facebook certainly had more ups than downs in 2007, but can the site continue its rapid growth into 2008? Where’s MySpace and what else is going in the social web? It appears that the real movers in and shakers in 2008 weren’t moving much in early 2007.

For the big players in the space, February represented a slight decrease in traffic, but the year- over-year growth rates seem to indicate that social networking (as an industry) has yet to peak. The table below shows the top social networks in February 2008, ranked by monthly visits. This ranking factors in both total audience size, and also intensity of use.

• Myspace was down slightly from February 2007 in terms of total US visits. However, the networking giant still holds a commanding traffic lead over all other Social sites.
• Facebook visits fell slightly from January 2008 to February 2008, but over the year the site has grown by over 75%. In terms of US visitors, it is now about one half the size of Myspace, but receives about 1/3rd as many visits.
• Niche markets are still attractive in terms of Social networking: Cafemom (a social network geared towards mothers), Linkedin (a networking site for professionals) and Fubar (“the first online bar”) all grew by 5X or more from February 2007 through February 2008. Fubar, in fact, exploded into the top 20 networks from relative obscurity one year ago.
• Innovative business models also had success in 2007: Communication platform Twitter, and white label social network Ning, both found a dramatically larger audience in the past year.

While fairly flat trend lines in MySpace traffic may provide an indication of the market reaching its peak, the rapid growth of some very new players in the space speaks to the opportunities in social networking that still exist… but only time will tell if Zuckerburg makes Forbe’s list next year.