Blogs, articles and editorial have grabbed the latest media announcement from MySpace regarding a new ad platform and are running comparisons of MyAds with other user generated advertising tools. I would like to take a look at this new ad platform simply from a MySpace perspective. Apparently MySpace unlike other social platforms is actually turning a profit (projected $1B in 2008 when I wrote the article). The company has increased employees by a tenfold since 2005 according to Techcrunch.com.
The company that is gaining and holding ground in the US due primarily to its hold on the Indie music scene is providing its users, musicians, small businesses, etc with a new UGC ad tool. Charged on a Cost-Per-Click (CPC) basis, the ads will be prioritized based on the maximum amount you’d like to pay for a click. The ability to target minutely based on demographics confirms why social networking media space is so valuable. For a small business, or geographically based band promoting a show this tool just makes good standard common ad sense.
If MySpace is already profitable isn’t MyAds just a way to monetize remnant ad space after the National Advertisers are done with their campaigns and as the site grows traffic and unique visitors it should’t be rocket science. Why are critics saying that MySpace is trying to have their Google moment? Why can’t MySpace just being doing what’s smart for them and their business vs. competing with a Google superpower.
Social vs. Search. Bring It On.