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Small businesses in metro Detroit are latching onto MySpace.com, tapping into the social networking site's 94 million users for free advertising and marketing.
An eclectic mix of local businesses, including a doggie day care, record label and clothing company, aren't buying ad space. Instead, they are each creating one of the millions of profiles normally used by individuals.
The profiles are working, business owners say, by attracting people interested in their particular offerings. Profiles can include pictures and blogs, and users add each other to their "friends" list the social networking aspect of the site so attractive to businesses.
Still, some users and industry experts say it's of little value for commerce and ends up being the 21st century equivalent of door-todoor sales.
The site has worked out well for Jonathan Yagoobian, founder and president of Red Light District Cloth. Ing in Detroit.
Some of the 4-year-old online company's sales from its casual clothing line come from the company's 2-year old MySpace profile, where it offers coupons and links to Red Light's standalone Web site, www.rlddetroit.com. Red Light, which had 4,069 friends on July 20, had $250,000 in revenue for 2005.
"As far as an advertising venue, we got a lot of direct sales from MySpace," Yagoobian said. He didn't have specifics, but said Red Light tracks what customers come from its MySpace page.
It's unknown how many Detroit area businesses and organizations use MySpace profiles. A search for the term "Detroit" brings up thousands of profiles, mostly individuals, with more added each day.
"With the rapid growth of MySpace, it's an excellent opportunity for advertisers to connect with potential customers," said Pete Snyder, founder and CEO of New Media Strategies, an Arlington, Va.-based company that specializes in online and word-of-mouth marketing.
However, advertisers must make sure they have something relevant to offer the site's users.
"Advertisers can't treat it like the Yellow Pages," he said. "They have to figure out and use MySpace correctly."
Liz Blondy, owner of Detroitbased dog day care Canine To Five, said she's figured out how to best use her company's MySpace profile, which has been up since September. She said it hasn't boosted her core business, but has helped secondary offerings such as grooming services.
"A lot of...