Making MySpace AdSpace

The Wall Street Journal (paid sub. req.) reports that News Corp. is investing (via acquistion) up to $150 million in online targeting technology.

Strategic Data makes technology that helps Web sites place and target ads aimed at specific audiences. News Corp. hopes the technology will help MySpace solve one of its biggest challenges: raising the price of many of the ads that run on MySpace’s more than 150 million user-created “profile” pages. Those ads currently sell for pennies per thousand viewers — well below the price fetched by some other Web sites — because big-name advertisers often confine themselves to building their own profile pages or advertising on MySpace’s front pages.
While MySpace topped Yahoo in terms of page views in December, making it the most viewed site in the U.S., according to comScore Media Metrix Inc., MySpace trails far behind Yahoo Inc. in revenue. For the three months ended Dec. 31, MySpace revenue tripled to $75 million from the same period a year earlier. Yahoo, by comparison, had revenue of $1.7 billion during the same time period.

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.