MySpace’s DIY ad service

MySpace on Monday launches MyAds, a do-it-yourself service that lets anyone create their own banner ads, target those ads and distribute them for as little as $25.

Say you’re a pizza maker in Chicago. You follow easy-to-use prompts to make an advertisement and send it to football fans in Chicago on Sunday evening, setting the price you are willing to pay if a fan clicks on your ad and the dates you want the ad to run. These ads will compete for space with large creative campaigns sponsored by corporate MySpace (NWS) advertisers.

It’s a tough time to launch a new advertising product. With the economy in free fall, the rate of online advertising growth has slowed considerably. It even dipped slightly in the second quarter compared to the first, according to a report from the Interactive Advertising Bureau and PricewaterhouseCoopers.

But MySpace CEO Chris DeWolfe insists the site has so many new offerings, like MySpace Music, that he hasn’t seen demand slacken. Research firm eMarketer estimates advertisers will spend $755 million on the site, up from $505 million a year ago.

DeWolfe explains his “cautious optimism” this way: “A year and a half ago we were in the social networking category …. Now we’re considered to be a competitor with the portals.” In fact, comScore reported in June that MySpace had surpassed Yahoo in the amount of display ads it showed.

It’s true, the site has been on something of a tear. It has recently hired a number of former Yahoo employees, including Valeh Vakili, who was the company’s director of U.S. sales operations. And developers like RockYou’s Jia Shen report focusing more of their energies on developing applications for the site.

In August, MySpace’s 120 million users spent an average 164 minutes on the site. In tough economic times, an entertainment site like MySpace could see a bump in traffic as people cut back on pricier attractions like concerts and movies. But as social networking begins to mature, it’s not enough to get attention; MySpace will need to continue making money. And in the next few months, that may be tricky for everybody.

Back to main column

Filed under Uncategorized

7 Comments | Add a Comment | Email

Digg

Facebook

I agree this is a good start for small businesses like mine, http://www.cutesingles.org I would love to find some entry level ad programs to get things going with my business. Thank you MySpace!

Posted By Tc, St. Paul, MN : October 22, 2008 2:21 pm

I run a growing website and I love the idea of being able to target an exact demographic for my product. I created an account last night and found the interface extremely easy to use, but MySpace ads does not currently let you get that specific in targeting your ads. Sure they have catagories like “Reading, Football and other generic activities”, but they lack the ability to target an audience like google.
I imagine once the MySpace Ads comes out of beta it could be a huge success.

Posted By Carlsbad, CA : October 14, 2008 4:59 pm

not interested

Posted By ~jessymarie~miami,fl : October 14, 2008 11:28 am

I wonder if these ads will only be on MySpace or will they be all over the web?

Posted By Allison, Placentia, CA : October 13, 2008 6:06 pm

As a campaign manager for a startup company, my perception is:

a. Social network are ‘bunch a many’ – they come and go
b. Myspace advertising target audience fall on the ‘fence’ when it comes to spending decisions
c. Geographical focus and additional demographics are not ‘open’ for me to make the decision.

I am not too motivated.

Posted By Steve, Saratoga, CA : October 13, 2008 2:06 pm

Advertising within the social media space is a huge opportunity for businesses both big and small. This is a neat product, although I still think there is more opportunity and a broader demographic on Facebook – and more revenue opportunity on LinkedIn once they open up their API. It may besuit advertisers to partner with companies such as Appssavvy who can precisely place those ads in a strategic place within a social media platform – rather than using crossing your fingers that the ad hits your target demographic.

Posted By Mac – Charlotte, NC : October 13, 2008 12:19 pm

I’d be interested to see what your impressions are with a low per click cost. How will they be weighted with the larger ads? Are they charging for impressions as well, knowing that these kids don’t click on ads?

Only time will tell.

Greg R.

Posted By Greg, Orlando, FL : October 13, 2008 10:26 am

CNNMoney.com Comment Policy: CNNMoney.com encourages you to add a comment to this discussion. You may not post any unlawful, threatening, libelous, defamatory, obscene, pornographic or other material that would violate the law. Please note that CNNMoney.com may edit comments for clarity or to keep out questionable or off-topic material. All comments should be relevant to the post and remain respectful of other authors and commenters. By submitting your comment, you hereby give CNNMoney.com the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying information via all forms of media now known or hereafter devised, worldwide, in perpetuity. CNNMoney.com Privacy Statement.