Archive for the ‘ Internet Advertising ’ Category

MySpace still makes more ad money than Facebook!?

I’m a bit suprised by this, because I thought MySpace was pretty much dead – but apparently, they make more ad revenue than the more popular (and more user friendly) social networking site Facebook. Take a look at traffic for each site:

Compete shows ~122,000 unique visitors for Facebook last month but only about ~61,000 unique visitors for MySpace – so Facebook has double the visitors!

Yet, according to a new report on social media by eMarketer, Facebook isn’t expected to suprass MySpace in ad revenue until 2011 – still a solid two years away!

Penelope Haller-Roshon

What gives!? In my humble (and possibly misinformed) opinion, Facebook has a generally more wealthy, educated crowd than MySpace – the type of people who are more likely to spend money on products being advertised. When Facebook first launched (ahh, the good old days!), it was only open to Ivy League colleges (Zuck was a Harvard elitist, apparently), then it was opened to other top colleges that weren’t quite Ivys but still pretty darn good (yay, Northwestern), and then they opened the floodgates for 12 year olds, grandparents, and anyone else with an email address, even my dog Penelope!

The quickest growing demographic on Facebook is now older users, who also would presumably have more money to spend on the products being advertised. Here’s an interesting chart of Facebook Demographics during the first half of 2009:

My only guess is that these estimates by eMarketer are on the (very) conservative side – and that Facebook will beat out MySpace much quicker than 2011. If I were a betting man (and I am), I’d put my money on this occurring MUCH sooner – the demographics and growth of Facebook are too hard to ignore…and MySpace is a more or less a sinking ship! With Facebook ad revenue growing and MySpace ad revenue likely to shrink, it seems like the perfect storm. And with all the rage of Twitter these days (and Facebook redesigning to imitate it), MySpace gets less attention and new users, putting the nail in the coffin.

Update: Laurel Papworth’s “The Business of Being Social” blog has a great post on this topic that supposes MySpace still holds a commanding lead over Facebook for ad revenue because of the Google / Myspace ad deal that generates $2.17 per user for MySpace, as well as MySpace’s event planning services like product/album launches and etc. I bet she’s right, but I still wonder what is taking Facebook so long to find a way to arrange an even sweeter deal than MySpace, given their more favorable demographics, growth, and traffic. I know Facebook has their own ad channel as opposed to using an established channel like MySpace does with Google, which should mean more profit in the long run, but even then…c’mon guys! Quit poking each other and get on it 😉 Thanks for the linkback, Laurel!