May 12, 2008

MySpace did $210 million in Q1

MySpace is growing its advertising sales at a decent rate, but will miss News Corp's earlier revenue goal of $1 billion for the year and likely end at $900 million. That still places Fox Interactive Media/MySpace as one of the largest advertising-driven online publishers in the world including larger online than all other traditional media companies if memory serves me. A few interesting points on Fox Interactive Media's performance from News Corp's Q3 reports:

* Revenue of $210, about a third from the search deal with Google
* Performance-based grew quicker than branded (24 % vs 21 %)
* HyperTargeting, MySpace interest-based targeting system, campaigns are 20 % of all campaigns, have double the CPMs of non-targeted, the average order is 60 % larger, and the repurchase rate is 75 %
* Key pages and 'skinned' homepage attract large brand advertisers

Worth noting is that even as MySpace seems to be doing a pretty good job at attracting more brand advertisers, the amount of money from performance-based advertisers grew faster. Sometimes it feels like the discussion is about search and brand advertising, when the reality is that performance-based is about as big as brand advertising. (And search roughly the size of those two combined.) The data for HyperTargeting suggests that the approach works, but that MySpace really hasn't yet brought in new, smaller advertisers with the system.

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