Earlier this week, Facebook founder Mark Zuckerburg made Forbes list of the World’s Richest Men. Facebook certainly had more ups than downs in 2007, but can the site continue its rapid growth into 2008? Where’s MySpace and what else is going in the social web? It appears that the real movers in and shakers in 2008 weren’t moving much in early 2007.

For the big players in the space, February represented a slight decrease in traffic, but the year- over-year growth rates seem to indicate that social networking (as an industry) has yet to peak. The table below shows the top social networks in February 2008, ranked by monthly visits. This ranking factors in both total audience size, and also intensity of use.

UPDATED - 3/13

• Myspace was down slightly from February 2007 in terms of total US visits. However, the networking giant still holds a commanding traffic lead over all other Social sites.
• Facebook visits fell slightly from January 2008 to February 2008, but over the year the site has grown by over 75%. In terms of US visitors, it is now about one half the size of Myspace, but receives about 1/3rd as many visits.
• Niche markets are still attractive in terms of Social networking: Cafemom (a social network geared towards mothers), Linkedin (a networking site for professionals) and Fubar (“the first online bar”) all grew by 5X or more from February 2007 through February 2008. Fubar, in fact, exploded into the top 20 networks from relative obscurity one year ago.
• Innovative business models also had success in 2007: Communication platform Twitter, and white label social network Ning, both found a dramatically larger audience in the past year.

While fairly flat trend lines in MySpace traffic may provide an indication of the market reaching its peak, the rapid growth of some very new players in the space speaks to the opportunities in social networking that still exist… but only time will tell if Zuckerburg makes Forbe’s list next year.

Update: At the request of several of our readers, we’ve updated the table to include several prominent social networks that were left off the original post:

• imeem.com
• livejournal.com
• 360.yahoo.com

• 15.4 million Facebook users interacted with fb Application pages (@ apps.facebook.com) in January:

  

• On average ~51% of Facebook’s user base engages with Application pages:

  

• In January, fb Application pages directly contributed 1.5 billion pages (8.4% of total) to Facebook.com’s total page view count. Given the trend, I expect Application pages to gradually form a larger chunk of Facebook.com’s overall page views over time.

  Note: Stats in this post are limited to activity on apps.facebook.com. Most Facebook Applications load pages in iframes from 3rd party (non-facebook) servers. According to sources, users can generate well over >10 page views on 3rd party servers for each one that they see on apps.facebook.com. In January, Compete estimates ~1.5 billion page loads of apps.facebook.com, which translates to roughly 11-12 billion page views across Facebook app iframes.

  

• 6-month gains in time spent, sessions, and page views generated on apps.facebook.com:

  

Bottom-line:
This data reinforces the fact that Facebook’s Application strategy and ongoing refinements appear to be working. Now the big question — as Facebook’s unique visitor growth plateaus, what will be their next traffic growth engine? They are still 36 million short of MySpace.com’s 67 million U.S. unique visitors.

Does privacy matter to most Facebook users? Take a look at the chart below, and judge for yourself (weekly unique visitors to facebook’s privacy settings pages):

Even after all the recent mainstream media coverage and debate surrounding Facebook’s controversial beacon program, online privacy in general, and Facebook making available universal beacon opt-out — traffic to Facebook’s privacy settings pages has essentially been flat. NOT A GOOD SIGN!

It’s likely that the average Facebook user DOES care about their privacy, and know they should do something about it, but are mostly unaware or don’t know what they can or should do. Should Facebook be doing more around online privacy education? There is a lot of unintended sharing going on, and I think it is in Facebook’s long term best interest to do so.

Apple has a long history of releasing critically acclaimed ads starting back in 1984 with “The Greatest Commercial of All Time.” More recently, one of the coolest aspects of Apple advertising has been the use of relatively unknown musicians, with their music as the (seemingly) most important element of the commercial. Through multi-million dollar ad campaigns, Apple helps bring these lesser-known artists mainstream. With the recent launch of the iPod Nano, iPod Touch and Macbook Air, Compete took a look at how consumers exposure to offline commercials influenced online behavior, and also how artists (and Apple) benefit from a partnership.

What’s incredible is how high quality TV commercials can foster online research. From August 2007 to January 2008, US consumers conducted nearly 1 million queries for iPod related commercials or the underlying music. The table below shows the top 20 search phrases (in terms of query volume), and how these queries were conducted over the period.

Its interesting to note that 15 of the top 20 searches contained the word “song” or “music” and also helps to explain search behavior. With almost no information being given about the music used in Apple commercials, consumers unfamiliar with the artist (and apparently enjoyed the song) naturally search for the song in the commercial.

Additionally, the fact that September was such a huge month in terms of Apple commercial search activity indicates the degree to which consumers enjoyed Feist’s “1-2-3-4,” a song that appeared in Apple iPod Nano commercials. Over 425,000 people were actively searching for the song in this commercial in September.

Apple TV ads are all about branding, but they apparently do a great job at getting people to revisit the advertisements online. They also are an amazing opportunity for an undiscovered musician. For all three artists in recent commercials (Feist, CSS, and Yael Naim), Apple ads resulted in exponentially greater exposure to consumers, even excluding the offline component.

• For Fiest’s “1-2-3-4” YouTube video, traffic grew 1200% from the month prior to the Nano commercial’s launch, and over 45X when views of the actual commercial (on YouTube, or Apple) was included.
• Growth for CSS’s “Music is my hot hot sex,” which was created by an fan, and then used by Apple, showed substantial growth as well.
• It appears that being exposed through Apple commercials also results in loyalty. In fact, 3 months after the Nano commercial launched, traffic to Feist “1-2-3-4” videos on YouTube was receiving 5 times the monthly views it was getting prior to its feature in the Nano commercial.
• It’s not surprising, but people seem to have confused the iPhone with the iPod Touch. Traffic to iPhone commercial videos on YouTube and Apple.com spiked around the same time as the iPod Touch ad was released. (not shown)

What is so significant about Apple’s advertising is that it not only helps to define the company and generate demand for talented musicians, but also helps encourage the music discovery process, which ties directly back to iTunes. By exposing consumers to great music from new (or unknown) artists, they get people interested in the music search. With an artist the company exposed nominated for a Grammy, and millions of people seeking out commercials instead of avoiding them, Apple is doing a few things right.

As the strike among the Writer’s Guild of America may be driving viewers away from prime-time TV favorites, automotive marketers are suggesting they are seeking alternative channels to reach prospective customers. Personal social networking sites on the internet are one channel marketers are anxious to better use to their advantage.

Since consumers are already spending time on these sites it is natural for marketers to try to place their product based on target audience for the networking site. We used the Compete Behavior Match product to take a closer look at the other sites visited by automotive brand shoppers in December. Behavior Match indexes overlap of a targeted segment with domains against the general internet population to the same sites. We found some interesting overlap occurring between these sites and brand shoppers:

• Iyomu.com indexed high for Ford, Chrysler and Chevrolet. This site is targeted at young adults touting itself as the “social networking site for grownups”.
• Imports, Toyota and Honda index very low with blackplanet.com – a social network directed specifically at African-Americans. Chevrolet shared the most visitors with this site.
• Toyota and Honda indexed highest with mashable.com and friendster.com – sites that target a younger demographic
• Chrysler shoppers were more likely to visit yuku.com; a site that has grown traffic significantly since June 2007.
• Female targeted site teamsugar.com indexed high for all the brands but particularly for Chrysler shoppers.
• Social networking leader myspace.com indexed close to average for all brands with only Chevrolet enjoying a slightly higher share of shoppers in the visitor pool.

By understanding where they currently index high, brands can see what natural associations are occurring or if current advertising is driving shopping behavior. But is volume of overlap the whole story? Are these sites generating engaged referrals?

Looking at December referrals from myspace.com to the automotive brand sites shows a broad range in the engagement of referrals:

• Toyota, the manufacturer that indexed the lowest with myspace.com had the most engaged referrals, averaging stays of over 8 minutes per visitor. They also had a much lower bounce rate, meaning fewer of their referrals left the site immediately after being referred.
• Chevrolet had the most referrals from myspace.com but the highest bounce rate at 88%.
• Chrysler has an interesting position with myspace.com indexing right on average with shared visitors and being middle of the pack for engaging referrals and bounce rate. Perhaps Chrysler is striking the best balance between quantity and quality.

Perhaps this is a fair alternative to prime time television advertising as marketers can target an audience that aligns with their brand and reach consumers shopping for vehicles that utilize social network sites to get “connected.”

In the space of a month, Facebook has gone from media darling to devil. However, all the bad PR didn’t hold back Facebook.com traffic in November. Unique visitors jumped 20%:

The big question — Are Facebook users even aware of their worsening privacy situation? Take a look at the chart below. Looks like regular Facebook users are mostly unaware of their worsening situation, or more likely don’t know what to do about it - not good.

According to one Facebook poll, 67% of all respondents had not even heard of the Facebook Beacon.

It’s generally a good idea to put users first, then investors. I hope the good people at Facebook HQ wake up quickly.