MySpace’s self service display ad product, called MyAds, officially launched on October 12, less than a month ago. Advertisers can bypass the normal sales routine, use a Flash tool to create their own display ads, and run them on a cost-per-click basis. The minimum CPC rate is $0.25.
Demand for the product was immediate and significant, we’ve heard from multiple sources close to the company. Average daily revenue, say our sources, is $140,000 – $180,000, which means MyAds is at least a $50 million/year business for MySpace already.
MySpace would not comment on the story.
Our sources say that a large number of ad arbitragers are trying out the system, as well as many of the millions of music artists that have MySpace pages. Those artist ads are doubly profitable for MySpace, since the ads link back to MySpace web pages, driving up page views and additional advertising impressions.
Outsiders are estimating that MySpace revenues for the fiscal year ending June 2009 will reach $1 billion. It’s clear that MyAds will be a significant driver of revenue growth. 2008 revenue was estimated to $750 million.
Facebook has a similar product to MyAds that allows advertisers to pay on either a per-click or per-impression basis, although Facebook ads can only contain text.