One of the companies using this marketing strategy is JP Morgan Chase. They understand that the younger demographic is not afraid of using their credit cards. As a result, they decided to create a Chase subgroup (can only access the site if you are a facebook member and join the group) on Facebook called Chase +1. Once you join the group, it describes the benefits you will receive from being a member. Kathy Witsil, director of Chase brands stated "We've been very active in marketing to a younger consumer and we know we need t be relevant to their life." By joining the group, signing up, and activating a card members can earn points through Chase.
Chase is not the only company joining these social networks. Burger King has created a Myspace page for their character The King. Myspace itself has more than 100 million member profiles, a majority of whom are of a younger demographic. By using these sites, companies are able to reach a large portion of their target markets.
It is estimated that marketers will spend $280 million dollars marking on social networks this year. Mike Murphy, the chief revenue officer of Facebook, discusses the possibility of being disruptive. Personally, there is nothing more annoying to me than pop-ups on a site I am trying to visit. Murphy explained that teens my age are the least likely to accept disruptions. This will create a big obstacle for many companies. They need to learn how to reach our demographic successfully, without being intrusive.
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