Commentary

MySpace up against the ropes?

Donna Bogatin questioned Arnie Gullov-Singh, vp of product management at Fox Interactive about diminishing CPMs and a devalued MySpace audience as social nets become ubiquitous.

Gullov-Singh said no -- MySpace CPMs continue to be strong, and the user base is stronger than ever. Well, not according to Google. During the giant's Q4 earnings call, Schmidt, Page and the rest of the exec team said that their glut of social net inventory was slow to monetize and partly responsible for slower than average revenue growth. A huge portion of that inventory came from the deal Google cut w/ Fox to run ads on MySpace in 06. And as for traffic, recent reports from Hitwise, comScore and Nielsen have shown slower growth for MySpace (in contrast to phenomenal growth on Facebook and other networks). Do a bit of digging into social net forums and personal blogs, and you'll find that many users are unsatisfied with the onslaught of ads on MySpace, and their format, and their irrelevance.

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