Time for a new
betting pool
As expected, usage figures for social networking site Facebook have finally eclipsed those of longtime rival MySpace.
In May, Facebook's unique visitor count caught up to MySpace, then surpassed it by a small margin. By June, Facebook hit 77 million unique visitors, representing a significant rise from May's 70.28 million uniques — and leaving MySpace's 68.4 million uniques in the dust, according to comScore.
Meanwhile, MySpace lost almost four million unique visitors in June, adding to the 700,000 uniques it lost in May. As Facebook expands in the US and internationally, MySpace's star appears to be steadily declining.
Last month MySpace announced plans to cut 30% of its US team, a total of 420 employees. Less than two weeks later, it also prepared to cut 2/3 of its international staff.
In May, an eMarketer report projected US ad spend on social networks would slide 3% to $1.14 billion in '09, due primarily to "problems at MySpace."
Meanwhile, a Bloomberg report proclaimed that the number of clients using Facebook's automated online ad system more than tripled over the past year, indicating more small- and mid-sized businesses are using it to target relevant demographics. And in June, Russian firm Digital Sky Technologies paid $200 million for less than 2% of Facebook, valuing the latter at roughly $10 billion.
Despite MySpace's waning popularity, it continues to generate more pageviews than Facebook. In June the site enjoyed 32.4 billion pageviews in the US, but dropped 10% from May.
Facebook, in contrast, witnessed 21.3 billion June pageviews — a whopping 12% increase from May.
Globally, it already trounces MySpace significantly. Worldwide monthly pageviews for MySpace slipped from 47.4 billion in April '08 to 38 billion in April '09 — a 20% drop. That same period, Facebook blossomed from 44 billion to 87 billion — a 100% increase. Developers also say activity on MySpace is decreasing by as much as "half a percent a week," TechCrunch says.
Falling out of favor with users bodes poorly for MySpace, which may lose a major revenue stream as a result. In 2010, MySpace receives its last payment from Google — part of an ad deal inked between Google and News Corp. in 2006 — after which it will likely be cut off. Under the terms of the agreement, MySpace would have received $300 million over the next year if it met certain pageview requirements, which, given the trends, it likely will not.
An eMarketer report finds social network ad spend will rise 13.2% to $1.3 billion in 2010, then go up from there — representing a change in how companies think about social networking in general.
"The expected rebound in spending will come as more companies focus on creating and implementing an overall social marketing strategy," said senior analyst Debra Aho Williamson. This, she claimed, is "a clear indication that the experimental phase of social network marketing is finally drawing to an end."
In the report, Facebook was credited for making headway outside the US as well as within; MySpace was noted for the challenges it will suffer over the next year.
Meanwhile, Facebook shows no signs of slowing down. The network successfully launched its “vanity URLs,” in June, with millions of users signing up for the new feature within days. The network also got some notice around its use during the Iran elections and protests, and around the new privacy settings surrounding its “Everyone” button.
