A few weeks ago, social networking giant Bebo sold for $850m. There’s often speculation about the actual value of internet success stories with such hefty price tags – especially sites which don’t actually sell anything tangible. But what is it about sites such as Bebo and YouTube that make the likes of Time Warner and Google want to throw millions of pounds at them?
Well, it’s quite a simple answer really. They’re holding the youth market in the palm of their hands. Recent research suggests the average child between the ages of 13 and 18, spends more than 20 hours a week online.
An ad for the latest Super Soaker water gun will probably generate more sales with a funny ‘home-made’ video on YouTube than a slot during the SpongeBob SquarePants’ commercial break.
With the emergence of technologies such as SKY+ where viewers can bypass ad content completely, the value of online marketing has rocketed. Business has to recognise the fact that if they don’t have an online presence, there’s a whole generation of consumers ignorant of its product. And yet, half of the UK’s small businesses still have no online presence according to Microsoft.
The modern online consumer is watching MTV while simultaneously buying a new pair of trainers and messaging their friends – all from the comfort of their bedroom.
So while the latest ‘Sale Must End This Weekend’ ad may reach a few 45-year-old housewives during Coronation Street, the savvy toy manufacturer has created a Facebook group and an online cult following to boot.
