The social networking companies see their members' profile pages as a lush target for advertisers, specifically if the ads can be customized. Members of MySpace treat their individual pages as a creative field for personal expression. This is pure joy for monetization experts!
“We are blessed with a phenomenal amount of information about the likes, dislikes and life’s passions of our users,” says Peter Levinsohn, president of Fox Interactive Media (MySpace is owned by News Corp.). “We have an opportunity to provide advertisers with a completely new paradigm.” The 100-employee team inside the Fox Interactive Media offices in Beverly Hills, called the "monetization technology group" has designed computer algorithms to screen the pages. The algorithms make their judgments partly on certain keywords in the profile, and the targeting technology has improved the likelihood that members will click on an ad by 80 percent on average (!). In November, MySpace will launch a self-serve online ad system to allow smaller companies to aim at MySpace users with their ads.
How will this affect MySpace's bottomline? Pali Capital estimates that this will help increase revenues from $40 million montly in August '07 climbing to north of $80 million monthly over the next 12 months.
The outline of MySpace's ad targeting efforts in details are shown today at the Merrill Lynch Media & Entertainment Conference in LA (the presentation webcast is here):
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=80133&eventID=1648797
“We are blessed with a phenomenal amount of information about the likes, dislikes and life’s passions of our users,” says Peter Levinsohn, president of Fox Interactive Media (MySpace is owned by News Corp.). “We have an opportunity to provide advertisers with a completely new paradigm.” The 100-employee team inside the Fox Interactive Media offices in Beverly Hills, called the "monetization technology group" has designed computer algorithms to screen the pages. The algorithms make their judgments partly on certain keywords in the profile, and the targeting technology has improved the likelihood that members will click on an ad by 80 percent on average (!). In November, MySpace will launch a self-serve online ad system to allow smaller companies to aim at MySpace users with their ads.
How will this affect MySpace's bottomline? Pali Capital estimates that this will help increase revenues from $40 million montly in August '07 climbing to north of $80 million monthly over the next 12 months.
The outline of MySpace's ad targeting efforts in details are shown today at the Merrill Lynch Media & Entertainment Conference in LA (the presentation webcast is here):
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=80133&eventID=1648797
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