MappingTheWeb //

With social networks like MySpace, Facebook, hi5, and Friendster dominating the market, how does one go about competing against these giants? Simple. You don’t.

The social network (SN) space is so crowded right now that adding another generic entry into the mix will accomplish nothing. So then, what do you do? Once again, it’s simple. Choose a niche.

Here’s a phrase I like to use that others believe to be true as well: “There are no niches on the Internet.” Although, this sounds contrary to my previous statement above, it’s all about perception. A niche topic such as “parenting” sounds like a very narrow topic, but on a worldwide scale, the target audience is immense. This is why I say to choose a niche, although there really aren’t any on the net.

Parenting? And a social network? That sounds ridiculous. Not necessarily. Just ask Minti. This small start-up out of Australia is generating huge amounts of traffic and interest from many parent-centric companies, such as diaper and baby food companies. In addition, the company has been approached by several large conglomerates and known consumer brands as a potential takeover target and doorway to a valuable market.

Another such niche success story is Sneakerplay. Branded as a social network “designed specifically for the global sneaker culture”, this shoe destination is already receiving attention with relatively low traffic. Because it is so lucrative to sneaker companies and the audience is a perfect advertising match, Sneakerplay was recently approached by Nike as a partner. Not only are they receiving top dollar for their ad placements, but they are proving out their model with credible industry players. In addition, the site becomes an instant potential takeover target for any large shoe company (i.e. Nike, Reebok, Adidas, and the list goes on).

Finally, we can add Facebook to this list. I won’t go into much detail about this play as it is already well known. Obviously, the company has taken a university/college niche approach to the social network game, which has proven to be extremely successful.

So what are the advantages of the niche approach? There are several. The most important being:

• Higher CPMs and ad dollars due to narrow target market
• Instant takeover target for large offline industry players
• Lower competition due to niche area

Having said all this, don’t rush out and start your own SN without doing the necessary market analysis and due diligence. A little bit of research goes a long way and may save you time in the long run.

So what’s your niche?