Myspace vs Google

Robert Young has posted an excellent analysis of myspace on Om Malik's blog.

In it, he points out the discrepancy between revenue and page views between google and Myspace. Myspace has greater page views. Google makes a shitload more mula:

Like all community sites that rely mostly on their users to author content, MySpace has had a very difficult time trying to secure high advertising rates. Historically, advertisers have held little trust in content that is not tightly controlled editorially and, therefore, the value they are willing to attach for ads placed next to such uncontrollable content has been very low. The result is clear… MySpace ranks higher than Google in terms of pageviews, but Google will gross $6 billion in revenues this year, while MySpace will generate about $30 million. The delta, which can be measured in orders of magnitude, is almost unbelievable. I realize the comparison is not directly apples to apples, but even so!

As one astute observer, in the comments, stated, the reason is because the online advertisers aren't there yet. I am not saying there aren't people buying CPM ads to target the younger crowd. I am just saying, they aren't there yet - in any meaningful way. Part of the reason is that local ad buys aren't efficient online. (I submitted a request to myspace a few weeks ago, telling them that my budget was $3k/month.  I haven't heard from anyone.) And the other reason - most of teen spending occurs offline. Their biggest expenditures are on: clothing, food (eating out with friends), movies, music and games. Food and movies: these are very social activities that occurr at a local place at a specific time. Therefore, making local TIMELY advertising buys very important. The only social network that automates the local timely ad buy process is facebook.  But, their system leaves a bit to be desired. 

Now would be the time I'd normally plug WhizSpark, since we provide a way for venues and event planners to tap social networks (and social networking websites) virally, through the connectors in the network. Suffice to say: Event planners, movie theatres, restaurants, venues need a way to easily buy access into these networks. And they need it to be accountable to their payback (eg CPA, CPL, maybe CPC). Right now, these social networks aren't making it easy for them. But, I suspect they are working on it.

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