Here we go with part two of my four part series on predictions for the web 2.0 space in New Zealand for 2008. If you don't feel inclined to scroll you can check out prediction #1 here.
Prediction # 2 - facebook vs. bebo and social networking
2008 will be a year that defines social networking as a marketing tactic for online business strategy in New Zealand. Whilst not as much of a sure bet as my first prediction yesterday, I believe that this one is also pretty safe.
It doesn't take a rocket scientist to realize that any CPC (cost per click) or CPA (cost per acquisition) media needs to be investigated as a potential tactic for any online marketing strategy. Facebook is starting to offer media on this basis as part of their wider monetization strategy. Bebo will surely follow with offers of media inventory on their site that can be purchased in similar fashion.
Combine CPC or CPA based media inventory on social networking sites that have substantial demographic data (enabling very specific targeting) and you have the perfect recipe to serve up to willing media buyers. These are buyers who are now beggining to be well trained in the art of ROI marketing using cost per click ads on something called Adwords.....see 2008 prediction #1
So the big local social networking sites in New Zealand are becoming well established. It's a showdown between facebook and bebo. Or is it?
When one actually considers the demographical make-up of the New Zealand based bebo and facebook communities, it becomes apparent that there really is no race between the two social networks in New Zealand. Facebook seem to be winning the race for the 30-35+ age group and bebo seem to be taking care of those younger than 25-30. My post way back in July last year has some details on early 2007 facebook demographics.
So as we look to the much longer term of social networking in New Zealand, surely the question will no longer be, "which social network will dominate the NZ market?", but rather, "will bebo and facebook maintain their respective demographic segments over time?". In other words, will the current under 25's move to facebook when they hit the 30-35+ age bracket, or will they stay loyal to bebo regardless?
If facebook and bebo can onluy successfully maintain communities that fit a certain demographic (specifically age), will there be room in the future for more social networks targeting the yet-to-be-tapped demographics of the very young and very old?
Or will bebo simply grow with their existing younger kiwi community and become the dominant social network for kiwis in the future?
I'll put these questions out to you guys....what do you think?
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