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April 23, 2006
How MySpace saved Chris DeWolfe's marketing soul
Effective direct marketers focus intently on what works and what doesn't through constant testing and adjustment. They launch, measure then adjust. Measure again and adjust. And never stop.
Direct marketing has an angel-and-devil duality: The angels focus on retention and the devils on massive broadcasts to millions of prospects. The angels build predictive behavior models of their existing customers, and the devils pray for a 1-2% response rate from blasts or catalogs they send out to lists they have purchased, never ask for permission and ignore the collateral damage inflicted on 98% of their recipients.
That's why the story of MySpace founder Chris DeWolfe is interesting.
DeWolfe started out as direct marketer, then graduated to aggressive online marketing, like mass emails and creating software that would track a user's movements and send her pop-up ads.
But as Saul Hansell explains, when DeWolfe bought the domain name MySpace.com on a whim and started creating a site to compete with Friendster, something changed. Something convinced him to forego his history of aggressive marketing that would have flooded MySpace with ads and instead, create a user-centric site built on establishing trust.
One of MySpace's early backers, Brett C. Brewer, said DeWolfe was adamant about trust: "From literally the first or second month, (DeWolfe) realized MySpace could be something we really need to protect because user confidence in the site was paramount." Too-aggresive direct marketing can sap then demolish user confidence.
User confidence helped spur the network effect of MySpace's growth, especially among advertising-hating teens. In three years' time, the site has signed up 70 million users and delivers nearly one billion page views per day, more than any other website except Yahoo.
It's pretty logical to assume that DeWolfe and his team have applied their direct marketing skills to measure what MySpace users like and love, what new stuff they want, and what needs adjustment. And they've done it with remarkable speed.
The question Hansell doesn't answer and remains tantalizing: What caused DeWolfe's lightbulb moment? When did the direct marketing angels win?
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Not sure what Chris's moment was --but it happens the minute the marketer realizes that holding a tight leash on their customer --gives them a very tired arm, whereas enabling changes everything.
[I will stop preaching to the choir now..;) ]
Keep preaching, Deborah. The more voices, the better.
While training a heavyweight for the MGM in Las Vegas several years ago, I saw the potential and opportunity to use wireless, broadband, and Internet technology to greatly simplify the entire boxing business and level the playing field for fighters and promoters.
I designed new online matchmaking and marketing features, a free agency system, which will reform the current unfair, corrupt ranking, matchmaking and marketing models, models which are imposed upon fighters through promoters' contracts and the sanctioning organizations. Needed transparency in certain features will reduce inequities.
I need help in putting together a management team. Do you think Chris deWolfe would be interested?
