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Coming Of The Online Age Marketing Challenges

836 words - 3 pages

Marketing Challenges(Cited Source: http://www.forbes.com/columnists/2006/08/11/skype-myspace-free-internet-cx_np_0814skype.html)(Forbes.com by Natalie Pace on 8 - 11 - 06)This article points out that Skype overtook MySpace in terms of the number of users who have registered for both, even though in recent times MySpace even overtook yahoo in terms of page views. The main thing that can be pointed out is the new and huge area for marketing that is waiting to be tapped. Ebay bought Skype with a specific idea in mind: Ebay wanted its users to be able to communicate with each other and Skype was thought out to be the best option. MySpace was bought by News Corp in a move to diversify its businesses. The MySpace buyout resulted in News Corp get a solid footing in the internet industry and a way to add growth to their stagnating revenues. MySpace and Skype were upstart sites started by a number of people who probably never expected it to be such a big success. These sites started over in less than 3 years and have experienced phenomenal growth in the US. They became so popular that big corporations couldn't help noticing it. Their buyout shows that bigger companies are trying to find new areas to diversify their businesses and maintain or increase the growth rate of the company. The new best platform for marketing is internet and MySpace and Skype are really popular sites that make a fortune by selling advertisement spaces to other companies. This also provides a platform for the parent companies to pitch their products to consumers.Skype has reduced the cost of telephone services. It was a revolution in its field. The way that it gave rise to a number of other Voip services is a worrying factor for the telephone companies like AT&T landline telephone services. This gives all the more reason to market their products aggressively if companies like AT&T have to avoid subscriber erosion. In the case of MySpace, it has become so popular that the internet giants like Yahoo! are facing lower page views and that means that Yahoo! has to sell their advertising spaces for less amount of money. Rupert Murdoch had noted that one in four users was interacting with MySpace. This shows the huge market that marketers have in front of them. MySpace had signed a pact with Google to show its ads in MySpace and that deal cost Google near to $1 billion, which was even more than the price that News Corp paid the original owners of MySpace. The popularity of these...

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