MySpace only makes 25 Million a month? I really assumed it was making a lot more in advertising. It’s the ONE PLACE that all the young folks hang out at in the world and it can only sell 25 Million in direct advertising and adsense?
That’s really not very good. Maybe we should all exit the ad game soon. I mean Calacanis could easily pull 100 million a month out of this if he set his mind to it. Although they did steal the old Weblogs Inc guy Shawn Gold to drive up revenue. Hmm, I wonder what the problem is?
As is often the case, the media is trying to extract the “interesting bits†from Rupert Murdoch’s keynote interview at the McGraw-Hill Digital Media Summit in New York yesterday. The best tidbit seems to be that MySpace is pulling in nearly $25 million per month in ad revenue, with a growth rate of 30% per quarter.
MySpace has grown much faster than anyone expected, says Murdoch, and they’re seeing strong growth internationally thanks to MySpace Australia, MySpace France and other spin-off sites. But nor is Murdoch scared of Facebook – he says that students “pretty much need†Facebook accounts, and that young people will happily have accounts on both services. MySpace won’t be the next Friendster, he says. That seems like a fair assessment: despite the skeptics, there’s no sign that these supposedly fickle teens have plans to go elsewhere.
Originally posted on February 10, 2007 @ 11:44 pm
You should check the earlier posts, I covered this in part already :-) but on a more serious note, it’s well known that MySpace advertising is awful, I read somewhere it’s something like 0.00001c CPM, it’s literally that bad in terms of converting.
I know it’s easy to pick on the big boys like News Corp but they’ve only had Myspace for less than 2 years and have brought advertising revenue on the site from nearly nothing up to $25 million in profits per month. Not total revenue, profits. In two years they’ll have the full purchse price recooped. That’s a brilliant growth effort by anyone’s standards.