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Summary:

The folks over at MySpace sure have a lot on their plate, and the pressure is mounting. It’s no secret that the News Corp.-owned social network is playing catch-up with Facebook‘s rising traffic, and the expiration date on its advertising deal with Google is looming. Now, […]

MySpace logo The folks over at MySpace sure have a lot on their plate, and the pressure is mounting. It’s no secret that the News Corp.-owned social network is playing catch-up with Facebook‘s rising traffic, and the expiration date on its advertising deal with Google is looming. Now, in addition, U.S. advertising spending on MySpace is expected to fall 15 percent in 2009 to $495 million, The Wall Street Journal reports, citing a study from research firm eMarketer.

News Corp. chief Rupert Murdoch, MySpace CEO Owen Van Natta, and the rest of the MySpace team better start making headway with their turnaround strategy for the social network — and fast, or falling behind in traffic won’t be its only Facebook-related worry. U.S. ad spending on Facebook is expected to rise 9 percent to $230 million in 2009, and the Palo Alto, Calif.-based company is on track to exceed MySpace in advertising dollars by 2011, according to the Journal. Though Van Natta has been shaking things up at MySpace with a series of layoffs in the U.S. and abroad, it’s going to take more than downsizing to help the floundering social network regain the status it once held — if it can at all.

But MySpace isn’t the only one in trouble. Online advertising on social networks is expected to be down sharply from previous estimates in December. According to the Journal:

EMarketer predicts that U.S. ad spending on social networks will drop 3 percent to $1.1 billion this year. In December, it projected growth of 10.2 percent for 2009 to $1.3 billion.

A lot can happen before 2011, and MySpace will need to work something out with Google before that funnel of advertising revenue is cut off. MySpace still leads the social networks in U.S. advertising dollars, according to the Journal, and Murdoch has expressed that News Corp. is working hard to improve MySpace. It will be interesting to see how and when these changes on MySpace will happen, especially as Facebook keeps chugging ahead with over 200 million users and counting.

  1. Interesting. But I’m curious if either can actually be profitable from ad revenue alone…

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    1. “U.S. advertising spending on MySpace is expected to fall 15 percent in 2009 to $495 million”

      Unless you think MySpace’s operating costs atr more than half a billion dollars, IT’S ALREADY PROFITABLE.

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      1. Ian they are not profitable, and one of the reasons they had massive job cuts is because they had to lower their operating costs. I think we will hear more about their operations soon enough when news corp reports its quarterly numbers.

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  2. [...] however, whether SuperFan can draw people away from MySpace and Facebook to its site. But with MySpace floundering to get its act together, it’s a perfect time for a new competitor to enter the social network [...]

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  3. [...] in beta today, symbolizing the beleaguered social network’s first step forward towards redeeming its fallen status. The new service, called MySpace Mail, is gradually being rolled out over the next two weeks to the [...]

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  4. [...] percent to $23.8 billion this year. And when it comes to the rapidly growing social network space, eMarketer said last month that while it expects U.S. ad spending there to drop 3 percent to $1.1 billion in 2009, it sees it [...]

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  5. I want to subcribe to my space .com email

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