Orkut Users Down By Upto 50% – What Really Backfired?

It looks like the embarrassment which Microsoft faces in cornering search market from Google is spreading its wings to Google’s own effort of gobbling up a larger slice of the social networking pie.

Orkut, Google’s social networking venture, has registered a 30% drop in traffic and 50% drop in page views per visit as noticed by our internal study.

The whois ranking for orkut is down to 58 from just 11 and page per view is down to 19.5 pages per visit from a healthy 38.5 pages few months ago, which is a severe 50% drop.

orkut traffic slide

This comes up despite the introduction of applications on Orkut and several other added features which were supposed to put Orkut in line with other biggie social networks and just in time when Google was beta testing its monetizing plans for Orkut.

The thing to consider is that the severe drop in numbers is not reflected in other social networks which are showing sluggish growth.

Possible reasons for severe decline in uses:-

  • Orkut dependency on emerging markets like Brazil and India is not unknown. What really comes as a blow is big bang entry of bigger social networks like Facebook, MySpace and several others into the core market of Orkut.
  • Inability to make a dent into developed market, largely ruled by the likes of Facebook, MySpace & Hi5.
  • Absence of any killer applications.
  • The increasing dominance of micro blogs like twitter and pownce in emerging markets.

The above points could also hold true for many known social networks.

This eventually lead us to the bigger question -

Is social network hype over or their is more face to It?

Shāyon Adds : Although Raghav has taken all due measures to try and analyze reasons behind the trend, I think, what skipped out of his attention is that Orkut had changed the domain extension from orkut.com to orkut.co.in since quite some time. If you take a closer look at the Alexa rankings given below, for orkut.co.in, you shall notice that the ranks for the same had taken a huge leap from June, almost the time when the views plummeted in the case of orkut.com. Anyway, coming back to the original concept, do you think Orkut is losing its charm in the social networking market? Do you think that the nature of social networking is evolving, what with Twitter, Plurk and FriendFeed?

9 Responses to “Orkut Users Down By Upto 50% – What Really Backfired?”

  1. August 24, 2008 at 10:37 pm #

    such a big mistake from my side …..i just forgot that co.in extension….cant help it cos i dont use orkut….no justification bad post and just take it down …..and everyone sorry from my side and i apologize….

  2. August 24, 2008 at 10:48 pm #

    The same time when orkut launched its brazilian and indian domain. Here is the alexa ranking for brazilian domain (which has largest userbase):-
    http://www.alexa.com/data/details/traffic_details/orkut.com.br

    Also, to remind you it is the same period when Facebook launched Facebook chat and availibility in 21 languages including Portuguese language. Haven’t these factors affected orkut??

  3. August 25, 2008 at 12:56 am #

    Raghav – You are an id iot!! .Anyone who uses orkut knows about the domain switch. You guys should do atleast **some** research before publishing. You are AjTak of blogs!

  4. August 25, 2008 at 2:17 am #

    Something that I’ve always found repelling is the mindless usage of “Applications” on Networking sites! Well… more so about “sharing” them than actually using them. I do not mind every individual using the app he/she likes.

    I think what gets FaceBook much ahead of Orkut is the fact that it’s “neat”, especially after launching the new skin. It was great to see them realizing that profile pages were getting bigger and uglier by the day. This made them come up with “partial profiles” and then finally the revamp.

    We must remember, the very reason why Orkut became most widely used, today, was because of its simplistic and cleanly shaved look. And of course, it was just one single feature of scrapping that got it to the level it enjoys today. Somehow, I personally feel Orkut is strangling itself gradually. Of course, it all sounds great, with the new feature of getting sms notification for scraps. Truthfully, do you really care about it?

    Nah, I’m no Orkut hater. But looking at a social netwrking platform’s perspective, I shall rank LinkedIn at the top most because it does what it promises and that’s networking.

    Talking about Rupesh’s point of Gacebook being launched in 21 languages, I really don’t think that particular aspect matters a lot to orkut since it hardly has any presence outside brazil, portugal and the sub-continent.

    The Chat feature on Facebook… yes, that definitely has a lot of potential. A lot of opportunities and ideas can be tapped riding on the messenger engine.

    On the whole, Orkut needs to revamp the way users access and use the site and social networking, in itself, needs to be infused with fresh and crisp ideas.

    It’s time… for a change!!

  5. Sushrut
    August 25, 2008 at 1:13 pm #

    All this traffic of myspace,fb,hi5 how much revenue is that generating? Do you have any figures about revenues of fb,myspace,hi5 in last quarter? I have started doubting whether these sites can really grow to billion dollar businesses? I understand fb was valued at around 15 billion dollar when microsoft invested in it. But I dont see them generating revenues enough to even go public at some stage.

  6. August 25, 2008 at 2:33 pm #

    @sushrut never under estimate any business cos every business has its own potential…..as far as valuation of all the social network is concerned they are under closed doors and they hardly valued at their net incomes rather than the emphasize is on their subscribers and their reach….the projected revenues for facebook for fy-09 stands at 1.5 billion dollars …and if we assume they have an EBITA MARGIN of 50% then it comes to EBITA of 750 million dollars the valuation of 15 billion dollars comes at just 20x EBITA not too expensive looking at the fact that their revenues are poised to grow at reasonable pace after fy-09…so the main point for valuing these companies would be at what rate they can grow their net incomes and subscribers…..do not forget the case of dlf back home when everyone thought that 25 billion $ valuation was unjustified but it looked damn cheap after they reported 8000 crore net income last year though its anothe rthing that most of the money was never received in cash……..it was company transfer…..but it depicts one thing that the smartest get in first while the foolest get in when the hype is about to over…..remember 2000….so even these social networks would test their destiny as only few would survive the bust………

  7. August 25, 2008 at 2:58 pm #

    @I-dont-do-research

    Well, if you accuse us of not researching then I doubt we would have been able to come up with the stats of orkut.co.in and the Brazil extension. Yes, the direction of the post might have been a little outta the way at first but everything we reported was right.

    What intrigued us about this post is the idea of questioning the very concept of social networking that we have been following, for the past 5 years or so. Do we really care to be in touch with our friends, so much, even today? Everywhere I look around, I see my friends adding their friends up, thinking “kya pata kab isski zaroorat padh jaye”!

    If you notice more closely, “what are our friends up to” has become more interesting for us as compared to “want to be friendship with me”. This is the age of Twitter and FriendFeed that catches our fancy. This theory gets more prominent by the fact that Facebook has today divided the types of feeds into multiple categories.

    @Sushrut
    Talking about revenues, with the amount of advertisements getting infused into the social networking sites and with more and more targetted advertising, do you really believe that these sites shall fail to generate revenues? Yes, as for actual stats, we shall have to work on it.

  8. Sushrut
    August 25, 2008 at 5:43 pm #

    @Raghav
    I dont know from where you got projected revenues for fy-09. any link? as far as fy08 revenues of facebook, based on which microsoft valuated the company in Jan/Feb 2009, stood at 300-350 million. dont want to get into all the account here but EBITDA, which operational performance, was negative with lot of capital expenditures etc etc. The thing that I missed out was how much revenue these sites will generate from India. Yes, globally also I do not think they will be able to keep up the growth. But even if we concentrate on India and social networking related revenues in India, do you have figures to share in that or any guesstimations?

  9. August 26, 2008 at 9:48 am #

    Is Alexa reliable?

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