Looks like all social networks are pretty serious about monetizing the massive user base each have. We talked about Facebook coming out with a platform to create targeted ads and today MySpace launched My Ads a self serve ad platform.
The difference however comes with Facebook enabling only text ads where as MySpace expands ad business by allowing display ads. It lets users to select display units and create advertisements using templates or they can upload one they have created themselves.
The ads at MySpace are charged at CPC and the priority for each is set according to what rate does the advertiser set for the CPC along with its relevance to the information. The methodology is similar to that followed by AdSense, the pay is inversely proportional to the number of clicks each ad receives. Also there is a difference at how MySpace targets the desired users. Unlike Facebook that targets ads at users based on what they have mentioned about their like; MySpace on the other hand categorizes users with similar tastes and makes targeting particular ads easier. Let’s say your ad focuses on a group that loves Friends and lives in New York, My Ads lets you do that directly from its platform.
My Ads can definitely turn out to be the most important source of revenue as it already generates $850 million. CEO DeWolfe said:
We expect MyAds to be a significant revenue source for us. It has already exceeded our launch expectations in the pre-launch phase.
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