Internet

Rupert Murdoch’s cool new thing

24 June 2006

Edie G. Lush says that MySpace, the online social network, is another money-spinner for the great media mogul

Six years ago, the web claimed only 1 per cent of the British advertising market. WPP estimates that by the end of this year, it will account for more than 13 per cent of the £12 billion market, overtaking national newspapers. WPP also notes that spending on television advertising is at its lowest since 2001. Faster and cheaper broadband deals mean that 40 per cent of British homes are now connected at high speed to the internet, surfing more and watching television less. Where television ads often miss their mark, web advertising is highly targeted and has measurable results. Rupert Murdoch bought MySpace to ensure that he has revenue in this growth sector of the market, protecting himself against any corresponding decline in NewsCorp’s television and newspaper earnings.

Does it matter if MySpace is not the newest, coolest thing? No. NewsCorp is already adept at linking parts of its vast empire to exploit the internet’s ‘viral’ promotion abilities. So while Murdoch himself is lampooned on numerous fake MySpace sites as an ‘evil billionaire tyrant’ and ‘The Dear Leader of the Kim Jong-Il Fan Club’, he is — as so often — laughing all the way to the bank. He may not be interested in making online ‘friends’ but he has always been remarkably good at understanding what people want and selling it to them, and through MySpace he has found a valuable new audience ripe for exploitation. If anyone can do it, Rupert Murdoch can.