The time has finally arrived. MySpace, the social media phenomenon, launched its self-serve advertising platform last month. With an overwhelming 78% share of the top searched terms on the internet, according to Hitwise, I say, it is about time. The big question now is, “Can MySpace monetize from its immense popularity?”
MyAds lets marketers quickly and easily create ads and serve them on MySpace, potentially reaching millions of customers. Just like any typical pay-per-click program, MyAds allows users to create an ad, select a target audience, choose a budget, and even track your results.
Similar to Facebook Ads, MyAds lets advertisers tap into the MySpace network based on interest, demographics and location. MyAds currently allows display ads only. Create an ad with pre-built templates and Flash tools or upload your own. You can choose between 728×90 or 300×250 ad unit. Facebook only allows text ads. MyAds operates on a cpc basis, while Facebook gives the option of cpc or cpm. There is no activation fee; however there is a minimum budget of $25 and a minimum cpc of $.25. Advanced hypertargeting technology is another feature that sets the two social media giants apart. MySpace builds out a profile for each user based on what they do on MySpace over time. With 1200 different ways to categorize each user; advertisers can target very specific groups with particular interests in a geo-targeted area. Facebook’s targeting capabilities are limited to what information the user actually enters.
There is no doubt that users are familiar with MySpace and spend a lot of time there. Now that advertisers have the option to reach this expansive network, MySpace is experiencing dramatic results with average daily revenue of $140,000 – $180,000, all within 3 weeks of launching! According to a recent article in TechCrunch, this advertising platform is poised to be a $50 million a month business. MySpace CEO, Chris DeWolfe believes this will be a significant revenue source. Some even estimate that MySpace revenues for the fiscal year ending in June 2009 will reach $1 billion. So, the question remains, can MySpace continue to capitalize on its popularity and the massive audience it attracts by monetizing its success?…only time will time.