The News Corp owned uber social networking site MySpace delivered revenue $90 million in 2006, according to a report at BusinessWeek.
In eCPM terms, with 31.5 billion page views for the year, News Corp only managed to make 0.29 cents per 1000 pages (eCPM) from the site, way below most industry averages, which usually are at least around the $1-$5 CPM rate dependent on the site…and even rubbish sites can usually manage 10-15c CPM.
In English, MySpace is getting just shy of three tenths of one cent per 1000 pages…or even better, $0.0000028 per page.
In case I did my sums wrong
9000000000 cents /
31500000000 page views =
News Corp hopes to make more from the site, ramping up ad sales to $271 million for 2007, but presuming the same traffic figures for 2006, the return would then only become 0.69 cents per thousand…still insanely low.
On the current sales strategy at MySpace, BusinessWeek reports:
“MySpace sells the majority of its ads at rock-bottom rates: an average of $1.50 or so per 1,000 users”
$1.50 CPM sales rate and yet the revenue is returning $0.0029 CPM? Here’s a hint to News Corp: drop the sales price from $1.50 to 10 cents..or even 1 cent per CPM and fill the inventory so the bottom line goes up…pricing your advertising at $1.50 when you’re getting overall returns of less that 1 cent CPM really says something, doesn’t it: you’re charging more than the market wants to pay…that and it’s well known the MySpace traffic doesn’t convert as well so it’s why people won’t pay for it…are quite clearly aren’t.
If you’d like to share some tips to News Corp on MySpace, leave a comment.