Tweens and the MMOG: Social Networking with Training Wheels

There've been a lot of news articles lately about MMOGs for the tween set. If you've missed them, Disney is adding ads to their "free" version of Toontown, as well as launching a new MMOG based on the blockbuster Pirates of the Caribbean movie series this fall. The hottest toys right now in the tween set are Webkinz, cheap little stuffed animals that are your key to the online world where kids can play games, earn KinzCash, and interact with their friends. And Club Penguin allegedly turned down a buy-out that would put the site's valuation at over $500 million.

Add in that tweens seem to have an awful lot of mom and dad's disposable income, and you have a marketing niche that can't be ignored, as well as a training ground for the next generation of Facebook and MySpace users. So what are these kids learning?

Each site has its own unique economic system. Sites like ClubPenguin and Webkinz allow tweens to earn money playing games, which they can then spend on their virtual pet or penguin. But in addition to training these miniature consumers to earn and buy, these sites are also brining in the cash; for full features on Club Penguin, parents shell out $60 a year for membership, while Webkinz requires the purchase of one of the stuffed animals at approximately $15 each, which nets you one year of access to the site. Disney sites have premium subscription services, and other sites are quickly getting on the bandwagon we first noticed back in March when Girlsense went to an ad-supported free service. All sites have safeguards in place for the younger set, with many allowing parents to set the rules for their children at an account level. Most can chat with pre-added friends, and some, like ClubPenguin, limit chat to pre-programmed phrases like "follow me" or "wanna play this game?" sort of phrases.

The tween market is alluring to companies and advertisers alike. Odds are if you don't have a tween living in your house, you have no idea who Miley Cyrus is, but Miley is the star of the Disney Channel's show Hannah Montana, and her latest album moved 326,000 copies in a week, beating out Kelly Clarkson's latest for the #1 spot on the charts (Miley's second #1 album in a year). It makes sense to not only market to these kids NOW, but also train them early to respond to ad-based social networking for the future, keeping Facebook's valuation as high as they can. I'd be surprised if I didn't see a Facebook Jr. in the next few years. And I'd like stock options for the idea.