Facebook Growth Could Threaten MySpace

As retailers watch the crucial social networking space, overwhelmingly dominant leader MySpace is very comfortably holding onto a 72 percent market share, according to stats covering June. But Facebook saw its growth soar 40 percent, which might be a bad omen for MySpace in a few years.

MySpace is still in a very comfortable position, holding a marketshare that is more than four times as large as Facebook's 17 percent, according to figures released Wednesday (July 23) by Hitwise. Statistics, though, can be misleading, especially when the base numbers are small. A much smaller site called MyYearBook.com is only at 1.54 percent marketshare, but that was enough for it to register a 318 percent increase, compared with its 0.33 percent marketshare recorded last June.