WPP has entered a joint venture with social-networking service provider Live World. The purpose for live world is to
"build out blogs, buddy lists, message boards, chat rooms and community sites for its clients."
As part of the partnership with Live World, WPP has the option to purchase $2.1 million worth of shares if it exercises a warrant to buy a million shares at $1 and another million shares at $1.10 a piece.
Live World is no new player as they have been around for 10 years ago in the form of Talk City, if you remember them, a community and chat site.
"Its clients include HBO, which runs message boards on HBO.com; Campbell's Soup, which boasts an online recipe-sharing site; and BMW's Mini Cooper, which has created an "owner's community" to which Live World boasts 70% of Mini Cooper owners belong."
Peter Friedman, CEO of Live World comments that people don't mind being part of a community connected to a brand as long as their is the added, vital function of being able to build relationships with other consumers that have similar interests.
Even more important than the business created in the network, is the marketing and research tool that the community represents. It's all about depth here, not width.
One more thing, if you hang around these networking areas, you can come up with extraordinary insights into consumers' likes and dislikes and preferences. Most of it will only help you if you're in a similar niche though.
Build up and build up your niches, there's a ton of money to be made here.
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