Thursday, March 27, 2008
MySpace and Friends Need to Make Money. And Fast.
"The numbers are amazing. MySpace's membership has ballooned from 20 million people in 2005 to 225 million today, an average annual growth rate of 513 percent. Rival Facebook grew at 550 percent a year during the same period. LinkedIn's rate was 182 percent.
"Yet one social networking metric is distinctly underwhelming: the one with a dollar sign. Lookery, an ad network specializing in social media, offers display ads on MySpace, Facebook, and Bebo for only 13 cents per thousand times the ad is served (CPM); Yahoo's average CPM is estimated at $13. Video ads on MySpace reportedly fetch just $25 per thousand showings; CBS charges $50 on affiliated sites, NBC as much as $75."
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