Most People Would Not Pay to Use Sites Like Myspace
October 18, 2007
Few U.S. consumers are willing to pay a monthly fee to use social networking sites, according to a new survey from market research firm Parks Associates. This online survey of Internet users found 72% of social networking users would stop using a site if required to pay a $2 monthly fee. Likewise, nearly 40% would stop if a site contains too many advertisements.
“Having a big base of loyal users is not enough,” said John Barrett, director of research at Parks Associates. To really succeed, he pointed out, social networking sites must consistently deliver to advertisers a desirable consumer demographic, preferably when they are about to make a purchase decision. For example, a site devoted to car buyers presents obvious advertising opportunities while sites with broad appeal are too watered down to command a premium. “Sites aren’t able to sell a hodgepodge mix of consumers for very much,” Barrett said. “It’s one size fits nobody.”
These findings present a challenge to the companies competing in the social networking space with even category leaders such as MySpace struggling to turn big profits.
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