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MySpace: Who Gets The
Techdirt:Doing The Math On MySpace: Who Gets The Failing Grade? techdirt corporate intelligence techdirt wireless techdirt books techdirt reports older stuff submit story past polls about feedback Search Techdirt Try the Advanced Search . Doing The Math On MySpace: Who Gets The Failing Grade? Contributed by Mike on Wednesday, November 2nd, 2005 @ 11:18AM from the something-doesn't-add-up dept. It seems like MySpace is the media darling lately, following their buyout by News Corp. Even if it's unclear what Rupert Murdoch is going to do with the site, the media loves the idea that it's the new MTV. So, it's really no surprise to see Wired Magazine put out a glowing profile of the company that seems to have tossed any sense of skepticism out the window. In fact, the numbers presented in the story (without sourcing) seem extremely questionable. The article first claims that MySpace received more pageviews than Google in August. That's a surprising statement, and probably should be backed up by a source, but there's none. Then, it claims that MySpace actually has 12% of all ads on the web which seems extremely high -- and again, has no sourcing. Of course, even if we take that at face value (which seems pretty questionable), it's hard to square that with the very next statement (which is the only one that is sourced): "MySpace should gross $30 million to $40 million this year." So, they have more page views than Google, a significant portion of all online advertising... and yet they're going to make a tiny fraction of what Google makes in a single quarter ? Also, by that math (assuming MySpace is really 12% of the market), doesn't it mean that the entire online ad market is equal to somewhere between $250 and $333 million a year? Either someone's done the math wrong or the management at MySpace deserves to be fired for their ad sales deals. Update : Jeff Howe, who wrote the article for Wired Magazine, stops by in the comments to claim that the numbers are legit and are from Nielsen. While we had no doubt he got the numbers from somewhere legit, it still seems worthwhile to question those numbers, as the math makes almost no sense. If you have 12% of all ad inventory online and you're only making $40 million a year, something very big is very wrong. As we said, it may be with MySpace's dealmaking ability or it could be something else -- but some big explanation is clearly missing. << Is This A Class Action Settlement... Or A Marketing Promotion? | Reply | Threaded | MPAA Sues Grandfather For $600k -- While Admitting He Did Nothing Wrong >> Thank you by The Stalwart on Wednesday, November 2nd, 2005 @ 11:31AM http://www.thestalwart.com I've heard these numbers repeated over and over again, and they never made any sense to me. Thanks for this post; It's time someone punctured the obvious absurdity of this data. [ Reply to this comment ] interesting by drew on Wednesday, November 2nd, 2005 @ 12:52PM http://www.preschooldays.com I was just arguing with a friend the other day about how much money Tom makes. Apparently we weren't the only ones who couldn't figure it out... [ Reply to this comment ] Re: interesting by Anonymous Coward on Wednesday, November 2nd, 2005 @ 01:54PM Very good post, they need to be called out on that. This time next year MySpace will likely be in the graveyard right next to Friendster. [ Reply to this comment ] # of ads per page and shitty cpm rates by Gabe on Wednesday, November 2nd, 2005 @ 04:24PM http://www.sitonmyspace.com/ Take into account the number of ads they hit you with per page, no less than three or four, they might be able to hit that number. The reason their revenue is so low compared to their pageviews is because they get REALLY bad CPM rates for the ads they server due to bad response rates. [ Reply to this comment ] myspace is a shit hole by Anonymous Coward on Wednesday, November 2nd, 2005 @ 07:07PM http://ly2.com down with myspace [ Reply to this comment ] No Subject Given by A. Guy on Wednesday, November 2nd, 2005 @ 08:52PM I get so frustrated sometimes with them. It seems like I can get into my account maybe only 60%-70% of the time. There has been a pretty large rumour floating around that in 6 months or so they are going to start charging people. Or perhaps have a premium subscription which will allow you extra things for your profile and ad-free. I dont deal with it very much so I could give a rats ass what they do.... [ Reply to this comment ] Re: No Subject Given by JaeWu on Thursday, November 3rd, 2005 @ 06:47AM Not to toot any horns, but a friend of mine has put stake in a different online "friend" place. www.multiply.com gives you alot more functionality over myspace. To this day I can't see what the big deal is with myspace. It fails to work 50% of the time and the overall appeal of the site is sloppy :) [ Reply to this comment ] Re: # of ads per page and shitty cpm rates by Robert Young on Thursday, November 3rd, 2005 @ 07:13AM http://gigaom.com/2005/08/06/why-murdoch-bought-my Gabe nails it on the head. Community sites that rely mostly on user-generated content for placement inventory are not trusted by advertisers, so the CPMs are very low. A good rule of thumb is that the ad rates will be a least an order of magnitude lower than normal, even for extraordinarily popular sites such as MySpace. This, BTW, can prove to be the achilles heel of community-driven Web 2.0 models... it is imperative that advertisers get comfortable with the notion of placing ads next to totally uncontrollable/uneditable content. [ Reply to this comment ] Wired Defense by mkam on Thursday, November 3rd, 2005 @ 07:35AM I asked Jeff to support his assertions in the article and this is his reply. I hope that he doesn't mind his defense posted to some of the attacks on the article. On 11/3/05, Howe,Jeff wrote: Thanks for your email. Both of these statistics -- that i myself found difficult to believe -- come from Nielsen. We don't as a general rule mention sources as it takes away from the flow of a magazine feature, but we do, as a rule, make sure we are right. I would never go to press -- and Wired's rigorous fact check department would never allow me to -- without having all our facts in order. fwiw, MySpace is able to serve so many ads because beyond receiving so much traffic, it also is incredibly sticky -- i'm quoting from memory here, but i believe the average user spends something like 5 hours a month on the site. again, that's from Nielsen NetRatings. [ Reply to this comment ] Figures used in my article by Jeff Howe on Thursday, November 3rd, 2005 @ 07:46AM Wired does not make it regular practice to source our statistics within the context of a feature story. However, my articles -- as well as everything else published in the magazine -- are rigorously fact checked. In other words, we make it regular practice to be right. In this instance, the pageview statistic came from Nielsen NetRatings, and the number of ads served came from the Nielsen AdRelevance figure. [ Reply to this comment ] Yesterday Wired.... today News.com. Ok... what's t by Jorge Rodriguez - RedPlaneta on Thursday, November 3rd, 2005 @ 07:55AM http://www.redplaneta.com Yesterday we had the Wired article about MySpace. Today News.com has a note about MySpace creating it's own record label by Nov 15. Uhm... I love the Wired and News.com guys, but this seems like an articulated PR move. IHMO. [ Reply to this comment ] Re: myspace is a shit hole by Kendra on Wednesday, November 16th, 2005 @ 07:36AM www.myspace.com/oxymoronic_kendra Oh sad, I really like myspace. [ Reply to this comment ] Myspace by Firezip on Thursday, November 24th, 2005 @ 09:21AM http://cybernet.sg5.info myspace is REALLY over-rated, and tom has alot of security holes and glitches in myspace structure. also i can't wait till it falls [ Reply to this comment ] Myspace and Google by Nick on Thursday, November 24th, 2005 @ 02:43PM It seems to be ovious that myspace is not working as a monopoly, first it fails to break one of the very most important rules which is profit maximization. The whole truth of why Google and Myspace are able to harnest this market is that there is very little marginal cost. But this is soon to be exploited because new firms will seek to grab a chunk of the profits that are being made and thus drowning the market, demand will fall, and zero economic profits will be made. If Google wants to control the market they should've bought myspace as soon as they heard about it. Now they have alot of catching up to do. [ Reply to this comment ] Re: Myspace and Google by bay area california on Thursday, November 24th, 2005 @ 06:04PM you got it on the head....but in the long run, economic profits, according to theory, always equal zero..... [ Reply to this comment ] No Subject Given by Taylor on Tuesday, November 29th, 2005 @ 04:27PM Being a journalist, this is facinating. Wethter or not the reporter said the numbers were legitimate from Neilsen, we can assume the reporter is not legitimate. It truely does not take high intelligence to figure out that those numbers are absurd. Choosing a bad source makes you look just a retarded as messing up the information yourself. [ Reply to this comment ] Myspace by PJ Brunet on Tuesday, November 29th, 2005 @ 10:24PM http://www.knowingart.com/ With students, Myspace could be more popular than email right now... in a college town at least, you'll hear about and see Myspace everywhere. One of the reasons why it works so well for communications--it gives you various options for authorizing incoming messages, something that email and IM lack... Maybe guys don't care so much about authorization, but girls do. I've been online for 20+ years and I've seen a lot--Myspace is no joke. [ Reply to this comment ] Re: Thank you by kelly clarkson on Wednesday, November 30th, 2005 @ 09:07AM poop what the heck r u stalkin about ?.. hey my name is kelly clarkson i think i dont understand i meen what r u talking about like everything u said didnt make sence well ok love u ~*~*~*kelly*~*~*~*~ [ Reply to this comment ] Re: No Subject Given by brooke on Wednesday, November 30th, 2005 @ 12:16PM for real them stupid asses!! theres an error almost every time i try to go on and if they start charging people thier wont be barely anyone!! [ Reply to this comment ] Myspace Rox and your all losers by Kendra on Thursday, December 1st, 2005 @ 11:37AM www.myspace.com/oxymoronic_kendra Well, you guys. Yeah, there might be a few glitches and stuff, but its the funnest sight i have ever been to in my life. You obviously dont know something good when you see it. I have met so many friends on myspace, and I get to personalize my profile and let people know who I am. I get tp play my own music and put up pictures and just plain have fun. Its the best way me and all of my friends keep in touch and you guys are fucking retarded making a stupid forum about myspace. i mean, seriously. You must have nothing better to do than bitch about stupid shit and I think you need to grow up and just leave it alone. If you dont like myspace then dont go to it. If you do, then great. But that like me bitching about the colors that google uses. You guys get a fucking clue and don't waste your damn time on this stuff. kendra [ Reply to this comment ] Re: interesting by Anonymous Coward on Friday, December 2nd, 2005 @ 01:39PM fdsasdasdad [ Reply to this comment ] No Subject Given by Anonymous Coward on Friday, December 2nd, 2005 @ 01:40PM shut up idiots im on it. [ Reply to this comment ] Re: myspace is a shit hole by alex on Monday, December 12th, 2005 @ 08:59AM www.myspace.com/leximarie09 i like myspace. u need to shut ur face. lol [ Reply to this comment ] Re: Thank you by alex on Monday, December 12th, 2005 @ 09:01AM www.myspace.com/leximarie09 wow u r really stupid the ppl that leave comments r really dumb [ Reply to this comment ] Re: Myspace Rox and your all losers by ana on Monday, December 19th, 2005 @ 03:38PM i hate you [ Reply to this comment ] Why do you still exist? by Minion on Friday, December 23rd, 2005 @ 01:28PM /././././http://www.binrev.com If there was a higher concentration of emos in one place, we could put them on an island, then nuke it. "Kendra", as you call yourself, you should really consider not using a coagulant the next time you cut yourself. Maybe you'll bleed enough to die! Then your pitiful, black soul will find its resting place in an eternal emo hellfire. You said you like guys who dress in black? Why not guys who are charred black from BURNING ALIVE! What's this, are you going to cry? It's fitting of an emo to walk around with a composition notebook, because they're all "amazing writers with inspired thoughts on the ordering of english words to form poetry worthy of the blackest and most emo person around" In closing, I'll introduce you to: http://emosong.ytmnd.com Please, get a life, or take your own. The world is better off that way. [ Reply to this comment ] Related Links Wired buyout unclear a glowing profile of the company single quarter Related Articles More by Mike Features Techdirt Corporate Intelligence Read about Techdirt Corporate Intelligence in CIO Magazine Like what you see on Techdirt? Get your own enterprise blog for your company, complete with all the news, summaries, and analysis you need from Techdirt's staff of expert analysts. Let us find, filter, summarize, and analyze the news for you. Sign up now! 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Myspace Graphic Help MyspaceGraphicHelp.com myspace,layouts,music codes,video codes,html tutorial,html,graphics, codes, free, contact tables, resources,design,help, icons Menu - Animations 1 - Animations 2 - Animations 3 - Animations 4 - Animations 5 - Animations 6 - Animations 7 - Glitter 1 - Glitter 2 - Glitter 3 - Glitter 4 - Glitter 5 - Alcohol & Drugs - Animated - Brands - Cars - Colors - Evil & Dark - Girly - Movies & TV - Musicians - Sexy - Space - Sports - Video Games - Other - Banners 1 - Banners 2 - Banners 3 - Banners 4 - Banners 5 - Banners 6 - Online Now 1 - Online Now 2 - Image Scroller - Glowing Text - Text Boxes - Scrolling Friends - Center All Text - Page Border - Flip Page - Hide Friends Add Me To Your Friends Myspace Graphic Help Myspace Graphic Help offers more graphics than any other website. And we also have large amounts of html and webdesign help. Alcohol/Drugs - Brands - Cars - Colors - Evil/Dark - Girly - Moving Movies/T.V. - Musicians - Sexy - Space - Sports - VideoGames - Other Thanks to Haole Boy, Skuller12, ndfreak718, Josh, Wefrox, Rob, Carrie, JackntheBox, Wh0Kid, xcarnag3x, MrNiceGuy, DeadStrokeX and Kay for making certain tables. If i missed you send me an email. Link Exchanges Make Money Myspace Glitters Funny Pictures Myspace Celebs MyGen Myspace Tweaks D's Myspace Html My Cute Space Myspace Games Free Layouts Myspace Pictures Myspace Codes Myspace Pranks Video Code Lab Pimp My Com Stuff All Free Music Video Codes More Links Your Ad Here 2005 Myspace Graphic Help All images are for myspace use only. Contact Me