MySpace launches their self serve ad platform, called My Ads, tonight, which was first talked about a year ago. Like Facebook’s similar product, it allows anyone to quickly create a targeted ad and serve it on MySpace.
Unlike Facebook, which only allows text ads, MySpace is only allowing display ads for now (advertisers would like both, I imagine). Users can choose between a 728×90 or 300×250 ad unit and can create an ad with pre-built templates and a Flash tool, or upload their own.
MySpace ads are charged on a cost-per-click basis (Facebook allows advertisers to pay, at their option, on a cost-per-click or cost-per-impression basis). Ads are prioritized based on the maximum CPC rate stated by the advertiser as well as relative click information - meaning that, like Google, advertisers will pay less if their ads tend to be clicked on a lot. The back end optimization technology behind the product was originally developed by SDC, which was acquired by MySpace’s parent company in February 2007.
The key to MySpace’s ad platform is their hypertargeting technology. Facebook allows targeting as well, although it’s based on interest areas put in by users directly. So if someone says they like books, you can target ads to them based on that. What MySpace does is much different - they build out a profile of each user based on what they do on MySpace over time, with 1,200 different ways to categorize each user. So if you only want to target women who live in California between the ages of 25-30 who like motorcycles, i can. There are 2,842 of them on MySpace. And if I just want to target those in San Francisco, I can. There are 147 of them (the ad tool tells you all of this):
Will This Be MySpace’s Google Moment?
The big social networks are still trying to find their “Google Moment” - the point when (and if) they find a way to monetize these massive audiences they’ve attracted. Google was just a great search engine until they matched it with contextual advertising. MySpace and Facebook need to find their own revenue engine.
Facebook will probably only generate $300 million or so in revenue this year. MySpace is ahead of them, with $850 million or so in revenue last year and a projected $1 billion in fiscal 2008 (which ends next June for them). But it’s still a far cry from what Google generates per unique monthly visitor.
MySpace says MyAds will be a major revenue source for them. “We expect MyAds to be a significant revenue source for us,” MySpace CEO Chris DeWolfe said in an email today. “It has already exceeded our launch expectations in the pre-launch phase.”
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wow. nice. thanks. goodnight.
That’s what she said!
Remember Yahoo has self-serve too!
http://yahoo.adready.com/ads/public
Great….now anyone can compete with the millions of ads on MySpace.
Sounds like everyone is trying to eek out as much revenue as possible in these tough times. Advertising money is key and i’m sure MySpace is excited about the opportunity.
http://www.techNmore.com
That’s what for-profits do, “eek out as much revenue as possible”. What bubble land have you been living in? Oh, some me-too blog world? Cool.
It was about time!!!
However, I am not sure the Myspace demographic will fit every business. Therefore, I am not sure about this new idea future…maybe ads and a young female demographic social network like Myspace does not fit at all…
I think we’re about to start seeing ads on everything as companies look for different ways to sustain top line (revs). Its all about valuation, and there’s huge risk to multiples and earnings in this economy. Its going to get ugly everywhere.
I think myspace should find something else because google have a way better traffic then myspace…..
I can really see this working well for the escort market. Craigslist needs to watch out.
I just tested it, and compared to Facebook, its demographic targeting falls way short!!! MySpace’s demo targeting is limited to just age, sex and location, while with Facebook I can target by age, sex, location, education, relationship status and sexual orientation. Advertisers are looking for more granular info than just ASL, with unfortunately Myspace doesn’t provide.
Hmmm, I just noticed that Myspace doesn’t allow flash ads to be uploaded, only jpg, png and gif! This alone I’m sure will be a deal-breaker for lots for potential advertisers.
Hate to bust up the MySpace lovefest this article will likely inspire, but does anyone really even see, let alone act on, the ads on social networks? Even Emperor Steve using the Force couldn’t get a good CPM out of social network advertising.
If that’s what you believe then go with cost-per-click and you’ll win either way. If you have something to sell that’s of interest to MySpace’s demographic, it’s a no-brainer. Assuming you have one.
It’s about time. I’ve been waiting for this for a while now.
Jason Kiesel
Founder & CEO
http://www.freedomspeaks.com
I’m curious to see as a musician how effective this traffic will lead to album sales. Geo Specific ads for touring bands sounds interesting, promoting future tours and venues.
I see a major problem with advertising directly with facebook and myspace. The problem is that users are accustomed to ignoring those ads. Facebook ads always appear on the right hand column. Myspace ads always appear in the top right corner. End users know that there will be an ad in that space, and in fact don’t even look in that direction - It is completely blocked out! You would be surprised at how low the engagement/CTR is simply based on this fact.
you right .. do not believe the hype.. ads and social network cannot be mix
Self service does have its advantages.
I think that MySpace will probably be more successful in these regards than Facebook. Facebook has reached approximate parity with MySpace only through expanding internationally more successfully than MySpace. MySpace still dominates US traffic among Hispanics, African Americans, and among people under thirty without a college education. Also, MySpace dominates among musicians, models, actors and culture industry professionals. I think that MySpace will be able to let people mine an awful lot of value among marketers seeking to target people trying to influence these people positioned at the center of our culture. People will pay premiums to reach these people. That is why I’ve also argued that MySpace will be more successful than some expect with its music network efforts (http://reframeit.com/comments/4cPXKLQzXaI). .
I see your point, but will those demographics really add to their value? Even if they do theoretically, it will take work to convince advertisers to pay any significant premium. The targeting has to be dead on.
I would love to see how Facebook modifies their ad platform based on MySpace’s interesting model.
Just another way of flushing more of your money down the toilet. The myspace ads have virtually zero conversions.
this is old news . i heard about this on various sites.
very nice. this is the direction social ads will go.
The fact that the ads are PPC will make it easy for advertisers to determine ROI. The better performing the ad, the lower the potential per action cost. This is indeed an important move for MySpace and advertisers.
It will be interesting to see some case studies after advertisers have the opportunity to use the platform for a while.
More details on my blog with screenshots: http://facereviews.com/2008/10.....s-platform
Cheers!
It might be a hit over facebook ads, but the real problem of cracking the monetary part of social media is remain unsolved.
site doesn´t let me login, neither with IE, nor with Firefox..
I was wondering if anyone else plans on trying this out? We have been thinking about running ads for our site http://www.kidsdesk.net there. Do you have any thoughts on this.
THoughts? Maybe spamming message boards with your site is annoying?
Can anyone here get any real work done. People go to Myspac to waste time. They dont go there to socialize, its a playground. Myads is a premise.
Myspac will never be a business “lets get something accomplished website”. Business efficiency is what the internet is all about. Business efficiency is the future of advertising. Is NewsCorp ever gonna expand to become a serious “Business Location Engine” contender? Shouldnt news corp own the greatest “business engine” on the net, or at least be in search of it. Who is or has the potential to be the best consumer driven business engine on the net? Does it exist? Who currently owns or has created the greatest “natural language” business network ever created? My answer…….it exists…..like a diamond in the rough.
KillerLocator.com - Easy Prey
http://professionallocator.nin...../mylocator
“Can anyone here get any real work done. People go to Myspac to waste time. They dont go there to socialize, its a playground. Myads is a premise.”
I watch Comedy Central to just relax and “waste time,” they must be completely stupid if they think they can monetize on the advertisements.
The only one who can get anything done is this loser scammer locator dude who has made a frikkin ning social network with zillions of spammy locator urls with each network having a membership of 1 (himself). What a joker….zeez
go get a life dude
sounds great!
Facebook is outrunning MySpace gradually so I don’t think that this MyAdds will make a big sense…
What’s a friend worth if they won’t click on your ads?
I have not had a chance to play with MySpace PPC but I did with Facebook - I was grossly disappointed and not entirely sure that there were not an abundant amount of fraudulent clicks. My conversions on the sales copy I used through Adsense was converting email capture at 62% and sales conversions at 28%. With Facebook, I captured emails at 7% and converted 0% - simply was not worth the time or money.
I suspect MySpace will be much the same.
You are a backwater hack and got what you deserved. None of the things you are involved with (Reality? Seminars? GTFO!) could possibly be relevant to users on facebook or mysapce. Wrong venue dumbass. I suggest you try late night tv ads. You personal anecdote is completely useless (as I suspect you are yourself).
This will be less major than MySpace thinks.
iPromote.com launched a similar platform (third party of course) to advertise throughout MySpace. It did not go Stellar for them
Everyone is trying to make a little extra cash by all means, I am curios to see how well these ads perform, as for some contextual ads services are a total mess.
Is this seriously new news? I was using this ad platform a few days ago, before the so-called launch. Maybe I’m missing something, or maybe I’m just tired. Whatever it is, I’m confused. Just a note: don’t try doing affiliate marketing using myspace ads…..it will suck you dry and not get a single conversion. Maybe that’s just me though.
That’s a good try! that concept is not new…you know, anyway other SNS services make their own Business Model…s…
Yeah, this actually soft launched 3 weeks ago. Early on it was killer for affiliates, but that ended after about 5 days. If you can deal with low margins (under 50%) and have the capital to test and refine, you might be able to make it. But it’ll be tough for anyone trying to get in now.
Why am I just forced to link my ad towards my profile? Why waste my ad dollars to create more pageviews for MySpace?
Does this work on Firefox? I can’t login or click buttons…
It amazes me how MySpace is so shit but can still make so much money.
This is a nice move by myspace; but it continues to follow their stale old act of creating large amounts of revenue on the backs of members and their content.
myspace is easily worth at least a billion, and where is the value coming from other than members/the communities content and activities.
How much ad revenue is myspace sharing with members that generate ad revenue for them ? Are they giving anything back to the community that has put them where they are ?
I am technology consultant, and this summer I became so feed up with the share cropper mentality of sites like myspace that I decided to build an application that shares the wealth that is created with the community.
And unlike myspace and the rest we will be releasing most of the service to the open source community because we know we are not the smartest guys in the room.
I wonder if they would consider allowing owners of the page (i.e. my page) to select what adverts they put on their page and get a share of the revenue.
I happened to get a good look at this feature when it was in development, over a year ago. I’m curious as to why this took so long. The hyper-targeting features are a bit weak as indicated above. The people developing it seem to feel that they have a nearly 100% likelihood that you’ll click the ad based on their targeting, which is bogus. An interesting thing though; seems that the Bank of America operating account still said Intermix which is who MySpace was bought from. Hmm…
Is this a few years too late for MySpace? I still think they will generate a lot of revenue, but if they had this system in place a few years back, their ROI would be through the roof. They have lost steam and have lost users due to the over clutter on the pages. It will still be very successful, but does anyone else think this should have been in place years back?
Craig
http://www.budgetpulse.com
Would have been a better posting if the author had done a little more work. What MH didnt report was that all the ad templates MySpace provides are for bands/music. I sent a note to MySpace asking where were all the business-oriented templates and rec’d an e-mail back saying “oh, for that you can just use the one blank template that we provide.”
Shows how serious a venture this is (not) for businesses. Proceed at your own risk.
What will facebook do as a rebuttal ? Will they buy a wysiwyg ad builder that one-ups myspace’s? Will be interesting to watch.
One important consideration is that they have a 25c minimum requirement for CPC. This is going to discourage most advertisers from trying it out. I don’t see such high CPCs giving decent ROI for non search traffic. I see the same problem for facebook ad system.
Please forgive me if a similar comment was made but from my perspective, I don’t see this new myspace ad concept feasible for the regular consumer like me…Myspace ads start at $25 or at the cost of $0.25 per click. For me personally, I don’t think spending $25 to target 100 people would be feasible because if I want, I can keep that $25 in my wallet, and utilize free marketing techniques such as posting myspace bullitins, network with other sites, take that $25 to make flyers, etc. My point to all of this is that if I want to make an impact on my business, then I’m going to have to spend a whole lot more money to do it. The $25 that myspace starts the charge at, would be just a scratch in my advertising and a waste of money. Anyone agree? I’d like to hear your thoughts on this.
more ads from google, wow!!
that’s how you make billions baby!
Dan Kim
http://12tb.com
Myspace ads only let you target the US and you have to have a US credit card. So much for getting revenue from people outside the US.
Anyone have any thoughts on this general conundrum… If you offer self-serve advertising at low rates hoping to attract small to med sized businesses, how do you justify trying to charge high CPMs to large businesses?
Get Myspace Adds The FAST & EASY Way!
on: http://tinyurl.com/5g97ua
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Interesting conversation. I’m guessing it’ll be a lot like Google Adwords. There’ll be the hundreds of millions who try it for one day, get crappy results, and quit… who say it’s worthless. And, then there will be the smart few who sit down with it, invest some time and money to figure it out, and make millions.
prolly cuz myspace is getting pwnt by facebook