Cyworld Lands on Myspace

Myspace has more than twice the traffic of the closest competing U.S social-networking site, Blogger. However with soaring growth, the American market is still open to competition.

The concern from some observers that social networking sites may not have staying power is unfounded, according to some experts, who compare the phenomenon with “reality television.”

Now that reality TV has become a staple in programming, Neilsen//Netratings Sr. Director Jon Gibs feels the same way about online networking

"Social Networking is not a fad that will disappear," he says. "If anything, it will become more ingrained in mainstream sites, just as reality TV programming has become ubiquitous in network programming."

Same Game, Different Moves

While Cyworld will follow MySpace into the U.S. market by offering an opportunity for users to interact in online social networks, that alone will not guarantee success, according to Gibs.

"The concept of 'reality' alone, or in this case 'social networking,' is not enough," he says. "In this competitive marketplace, sites also have to provide consumers with distinct content they can identify with."

Cyworld, just as Myspace, will include blogging, photos and music. However the similarities end there. Cyworld offers an advanced user interface not available on Myspace.

Home pages, for example, appear as three-dimensional rooms that users can decorate and personalize. Other users are represented by icons known as "avatars.” The idea behind the availability of options is for users to make their rooms as attractive as possible.

Along with its unique interface, the creators also devised a unique business model. Most of Cyworld’s revenue comes from the sale of items to decorate rooms.