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How social networking got ahead

Posted in Advertising, Digital, Mel Varley, Latest reporters' blogs July 2nd, 2007 by Melinda Varley

When we entered in to what is popularly known as the ‘internet age’ in 2000, our new millennium, the world wide web was still developing and still leaving many of us sceptical as to what we could gain from it, if anything.

Many were slow on the uptake but if we look at advertising figures released this week from marketing groups Aegis and WPP we can see that there are big investments being made in digital advertising. And why not, everything we now do is online.

The birth of social networking sites such as MySpace, Bebo and most recently Facebook has not just changed the way we talk to friends but the way we meet people, listen to music, buy products and view advertising.

Sites such as YouTube have allowed us to watch American TV, and each other, as well as being able to view ads before they break. Now advertisers are advertising on YouTube alone and viewing figures show that more people tune into YouTube than the evening news.

But how did the internet, social networking and YouTube become household names and the title of a new generation?

The answer is viral marketing. Never a social networking fan myself, in recent weeks I have found myself somewhat addicted to Facebook. I only joined because everyone else did and as it turns out there are some million odd users who did the same as me…then there are those avid social net workers who are of course just ‘in the know.’

The same goes for YouTube. I never saw it advertised but a colleague would find something funny posted on the site and send the link around to everyone in the office (at the time that was some 200 people). That’s just one office, in one city, in one country.

Word-of-mouth advertising is underrated in my opinion as are the companies that use the method. Take Skype for example. Skype must be the greatest invention since voice over IP (VOIP), which came about a few years ago. A lot of people were intimidated by the term and of course, like many things that are over the internet, didn’t trust it.

Skype launched in Scandinavia, which at the time was a little disconnected from the rest of the world and wasn’t yet part of the EU. When Skype launched it broke down the barriers of having to pay huge tariffs to make an overseas call and also worked as a social networking device. The way it launched was by word-of-mouth which worked exceptionally well because the software was completely free, as are the calls made. The concept is that if you have Skype and then get your family and friends to sign up its free to chat as long as you like, all you need to pay for is a headset.

In its first year the VOIP company had over a million users. And now, four years on, it has over 190 million users worldwide and has never advertised traditionally. The number is growing everyday and as social networking thrives in the age of the internet, traditional advertising is set to be tested for its worth as companies are beginning to set bigger budgets for viral and digital campaigns, facing out TV and radio which of course, can be accessed through the internet anyway.

With all the rules and regulations now enforced by CAP and BCAP about what we can and can’t advertise on TV to certain ages at certain time during certain programmes, is viral the way of the future?