The news media is obsessed with MySpace, Facebook and any other would-be newcomers that can keep large numbers of young people tied to their network for long periods of time. News Corp.'s MySpace is
new media's new Google, minus the solid advertising system. In fact, all the chatter is now turning to revenue and whether the likes of MySpace and Facebook can move beyond media darling novelty and
into mainstream advertising. Jupiter Research analyst Nate Elliott recently called MySpace a "bubble." In response to the site's sale to News Corp. last summer, he wrote: "It's become clear the 'real'
money comes from selling your network to a big media conglomeratate rather than selling ad space on your network." Having said that, analysts' monetization estimates have been all over the map. One
research firm pegged its 2005 ad revenue at $20.4 million, while another claimed it brought in $13 million last month alone. Or maybe ad revenue at these sites will always be erratic, dependent on
advertiser innovation and content integration. The unpredictable nature and risqué content that pervades these sites is another issue, deterring those global brands with a corporate-conscious
mentality. As Jeff Lanctot, the vice president of media for Avenue A/Razorfish, the Web's largest media buyer, said, "What [advertisers] struggle with is the content, the environment and the right
approach --pretty much everything."
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