How can brands use My Space?

and all the other social network sites - Bebo, Faceparty, Classmates, H15 etc etc.
We keep being asked how brands should use social networking sites (SNS). And we're not sure we know the answer - or that anyone does - yet.
Whilst it's easy to stick a banner up, its hard to see that really connecting.
There are some case studies where brands have created profiles and built up connection with other users, but for many brands this seems a step too far. The concern over the type of content being posted scares off lots of brands.
And its interesting to see how many brand names have been used by individuals - take a look at who is using the name of our friends at Red Bull. Whilst the rules of MySpace doesn't allow members to sell or trade their profile names Peter Kim spotted that there is an active trade on eBay. The next domain name landgrab?
So if no-one is sure how to use these sites, how do the sites make money? They are going to be able to make money out of content - music, ringtones etc but News Group need advertising ( and lots of it) if they are to recoup the $580m they bought MySpace for.
Interestingly we are seeing regional successes - MySpace is the dominant player in the US but in the UK its not much bigger than Bebo, Faceparty or MSN Spaces. Hi5 is small in most countries but is the dominant player in India with 40m users and Googles' effort in this space Orkut was perceived to have failed but is huge in Brazil (maybe that's why Nike joined with Google/Orkut to launch Joga.com - a branded SNS based on football).
What this suggests to us is that to be successful, SNS sites need to reach critical mass - when enough of your friends are on one site, you'll join that one. And once you're there it will probably take a lot to make you move. But as the decline of Friendster shows, popularity can wane - and there are stories from New York that MySpace is no longer seen as cool.
If you want a glimpse of the future we should look at Cyworld in Korea - it's estimated that over 90% of Koreans in their 20s have Cyworld accounts. A big factor in the success of Cyworld is how it integrates mobile - which will be the next big thing in social networking.
So they are probably here to stay, so what can brands do? Participate; be useful and add value.
Imagine if Kodak offered a branded tool that made it really easy to add and share photos on a SNS. What if Axe/Lynx offered a branded clicker that boys could add to their site and girls could click if they thought the boy merited it. And could a sportswear brand offer exclusive (branded) content of their stars - how many people on MySpace would add a David Beckham video that featured their name ( actually quite simple to do - just call us and we'll tell you how)?
We'll see a lot of action in this space.
Some apparently random; ad agency holding group IPG have bought a tiny (0.5%) stake in Facebook party and agreed to spend $10 in advertising - I wonder if they bothered asking their clients who will be expected to fund that agreement?
And some more strategic as people test out different approaches.
Its clear though, that it will be about engagement rather than interuption.

Update - there is some really good thinking on this subject here

Update - Henry Blodget has some smart thinking on the My Space business model

Comments

[Richard]

Hi Simon. It's Facebook that IPG have the stake in, not Faceparty. Easy typo.

Great entry. I often hear the "it's the best thing ever" vs "clients are afraid to advertise on it" arguments. It's not often people get past this to discuss the specific affordances of these environments.

[Simon Andrews]

Thanks Richard - let me return the favour with possibly the most useful thing I've ever found on the web;
http://mark.bird.googlepages.com/home

[Rob Mortimer]

Wendy's (US Burger Chain) did a fake profile for a cartoon burger; and the attached message bpard was filled with pro/anti Wendy's arguments.

What was interesting, was that although lots of people were criticising them for being a big fast food chain, a surprising number of people were sticking up for them. Also, the fact that they didnt try and censor the arguments meant a lot of the people who went there to criticise them actually went away with a better, more progressive image of the company.

[mchummer]

I guess Cyworld has a lot of influence in Korea but I don't think it will be appealing US audiences because of its "decoration". It is just too pretty. I don't feel guys will like it unless you're "Another" type of Guy.

I found interesting article.

Cyworld Lands on Myspace

http://www.ibtimes.com/articles/20060731/cyworld-myspace-sktelecom-newscorp.htm

[daniele]

take a look even at www.myspace.com/valcucine