More on social network monetisation - Myspace targets ads to good effect
From Mashable:
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.
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