MySpace's Latest Plan To Make Money: More Of The Same Stuff That Hasn't Been Doing Much

from the how-do-i-add-profit-as-a-friend? dept

Despite crazy talk of how much MySpace is worth, the fact remains that it really isn't much of a money-spinner, as it's been unable to turn its heavy traffic into decent ad revenues. Last year, it earned just $90 million in advertising sales -- hardly impressive for a site that's supposed to be one of the most popular on the web. One Wall Street analyst predicts MySpace will make $271 million this year from ad sales (which is an odd estimate, given that Google is supposed to pay a minimum of $300 million per year for ads on the site), and while that's some healthy growth, it's still a hardly overwhelming figure, particularly as the site's traffic growth is slowing and its user base is aging. But never fear, says BusinessWeek, which lays out MySpace's plans for profits: adding video content and targeting ads to raise CPMs, selling profile pages to advertisers, letting users sell things from their profiles, and trying to enlist its users to help in viral marketing campaigns. Sound familiar? It should, since it's the same sort of things MySpace has been trying for a while, but apparently without a lot of success. The MySpace story at News Corp. is following a similar pattern to that of Skype at eBay: following high-dollar acquisitions, corporate buyers struggle to turn popularity and huge traffic into significant profits.
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  1. identicon
    Anonymous, 2 Apr 2007 @ 6:13pm

    Why?

    ... Why be a myspace hater? myspace has over 900 employees, lets put everyone out of a job. too bad not everyone can come up with a Multi-million dollar Idea.

    It's ok, Keep hating & Myspace will keep laughin all the way to the bank... lol.

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