Is There Money in MySpace?

July 17, 2006 by Gaman

Like the popular YouTube.com, MySpace, the most popular social networking site is struggling to find a way to monetize its traffic.

Banner ads don’t make a Web site as much money as a sponsored link on a search results page.

Sponsored links lead directly to a business’s Web site, whereas banner advertisers are only supposed to make an “impression” on a visitor.

Compounding the problem is the fact that MySpace doesn’t even get the lucrative blue-chip brand advertisers to buy those banner ads despite the fact that its member demographic is the young and malleable crowd after which marketers lust.

But blue chippers stay away for a good reason. And it’s embodied in the profile of MySpace member Forbidden. Her page is the sort of user-generated content that keeps meticulous brand managers awake at night because of its unbridled nature.

Let’s just say you’re not going to find a Ford ad next to her comments section anytime soon.