-
MySpace Fires Up the Money-Printing Machine
September 17, 2007 - 11:40 pm PDT - by Pete Cashmore 3 Comments
At a Merrill Lynch conference in Los Angeles on Tuesday, MySpace will unveil the full scope of its plans to target ads to every MySpace user. In testing for 6 months, and the result of their Strategic Data Corp acquisition, it’s a plan that could finally turn their 110 million active users into cash.
The results have been remarkable: during tests, the targeting increased the likelihood that a user would click an ad by 80%. Richard Greenfield of Pali Research predicts revenue increasing from $40 million to $70 million per month by 2008.
100 people are on the ad targeting team, developing algorithms than scan the details of your MySpace profile and return highly targeted ads: the NYTimes gives the example of someone who lists Donald Trump as an idol and Fortune magazine as a favorite magazine. That user would likely see financial ads. A more likely scenario, considering the MySpace user base: a user lists an artist as a favorite and sees an ad for his/her music (in fact, clicks on music-related ads are up 70% in testing - no doubt this was a focus area and musicians are sub-categorized by genre and other variables).
Another revelation: MySpace will open up to “long tail” ads in November, allowing small advertisers to pimp their wares. It’s not yet clear whether this is a rival to Google AdSense or Facebook Flyers: most likely both. The example given is a local band advertising to music fans in the area.
Is this potential cash cow ready for milking?
-
Related Posts
-
3 Responses to “MySpace Fires Up the Money-Printing Machine”
Subscribe to Mashable
Sponsors
Popular Tags
Mashable Rocks
Recent Jobs
The Sun Startup Review
Sponsored By:
Partners
September 18th, 2007 at 1:30 am
[...] Fires Up the Money-Printing MachineSource:Mashable!2007-09-18 [...]
September 18th, 2007 at 2:08 am
well I think Myspace will be successful in pimping the ware’s as said..as so many sites r promoting myspace stuff..so I think its good idea that Myspace promotes its stuff..
September 18th, 2007 at 2:11 am
[...] Mashable: At a Merrill Lynch conference in Los Angeles on Tuesday, MySpace will unveil the full scope of its [...]
September 18th, 2007 at 6:22 am
[...] MySpace Fires Up the Money-Printing Machine At a Merrill Lynch conference in Los Angeles on Tuesday, MySpace will unveil the full scope of its plans to target ads to every MySpace user. (tags: MySpace) [...]
September 18th, 2007 at 11:16 am
[...] Share This [...]
September 19th, 2007 at 3:14 am
[...] è solo questione di tempo prima che nuovi paradigmi si affermino nel mercato. Il social networking appare oggi come la più promettente delle tecnologie legate a queste nuove forme di advertising, e la lotta [...]
September 26th, 2007 at 12:04 pm
It seems totally obvious to me that this strict zeroing in on marketing ads - to the individual consumer level - was on the horizon when web was introduced 12 year ago. All I can say is ’bout time!
February 15th, 2008 at 3:49 am
I have to agree with DanaMite , It’s about time that things got focused on the individual marketing , on soemthings like printing , print equpiments and such , I say that because that is the domain in wich i work in and My space might have some answers