At a Merrill Lynch conference in Los Angeles on Tuesday, MySpace will unveil the full scope of its plans to target ads to every MySpace user. In testing for 6 months, and the result of their Strategic Data Corp acquisition, it’s a plan that could finally turn their 110 million active users into cash.
The results have been remarkable: during tests, the targeting increased the likelihood that a user would click an ad by 80%. Richard Greenfield of Pali Research predicts revenue increasing from $40 million to $70 million per month by 2008.
At $70m per month that is knocking on a $1bn per year run rate – which would be great to see.
Particularly if they achieve it by effective targeting. That has been much talked about but not really seen working in practice at scale. I am seeing more and more examples of effective targeting working at a small scale though so I’m sure this is just a matter of time.