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Article

Title: Palsy-Walsy

Author: Quinton, Brian Article Type: Product Analysis
Source: DIRECT, v18 n12 p47(2) Publication Date: Oct 15, 2006
  ISSN: 1046-4174
  Illustrations: Charts
URL of Publication: http://www.directmag.com

The growing popularity of social-networking websites has implications for direct marketers. Some industry observers believe these sites will provide better access to the young-adult market, more space for contextual or syndicated pay-per-click advertising, and the opportunity to get customers more involved with products or services. The marketers that are interested in working this area must be willing to take the risks associated with advertising in a social network. The interest in social-network marketing began with an announcement in August 2006 that Google Inc. would provide search services that included AdSense advertising to MySpace.com, the largest social-networking site online. Google plans to pay News Corp., the owner of MySpace, at least $900 million between 2007 and the second quarter of 2010. MySpace must meet specific traffic targets to receive the payment, and the two firms will share ad revenue generated from the site as well. MySpace has some 100 million members in 2006, and traffic to the site rose 132 percent from 2005. Other social-networking websites are also showing strong growth rates in both monthly traffic numbers and market share. ImageShack and Flickr, photo-sharing sites, saw their monthly visit rates grow by over 200 percent for the year ended in July 2006. Video-sharing sites like YouTube also saw robust growth. YouTube, which went online in December of 2005, gets 20 million unique visitors every month.

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