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MySpace Passes Yahoo As Top US Internet Display Ad Site27th August 2008 10:25 am  null
Fox Interactive Media, which owns social networking site MySpace.com, has overtaken struggling Internet giant Yahoo Inc. (YHOO) as the top display advertising property in the U.S. In June, Internet users viewed 56.8 billion display ads on FIM sites, giving the News Corp.-owned (NWS) company a 15.2% share of the total U.S. online display ad market, according to data released by market research group comScore on Tuesday. Yahoo sites served up 53.1 billion display ads in the same month for a 14.2% share. The data mark a change from May, when Yahoo topped the U.S. online display ad market with a 15.9% share, compared with 13.5% for FIM. The latest data raise new concerns about Yahoo’s ability to grow its online advertising business. “It’s a continuation of this trend that eyeballs are going to other places on the Internet, and advertisers are recognizing that,” said Gene Munster, an analyst at Piper Jaffray. “It’s a step in the wrong direction for where Yahoo wants things to go.” The growing strength of FIM’s advertising business also highlights the potential of MySpace, a popular social networking site that accounts for almost all of FIM’s display ad revenue. Social networks such MySpace and rival Facebook have struggled to generate advertising revenue at the rates they originally expected. Even search giant Google Inc. (GOOG), which places search ads on MySpace, has said making money off social networks is more challenging than anticipated. Munster noted that Yahoo’s ad rates were still likely five times greater than the amount social networks could charge advertisers because their users are typically engaged in socializing with friends rather than searching for information or products. News Corp. purchased the parent company of MySpace for $580 million in 2005. News Corp. also owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal. ComScore also released a different set of results that filtered out tiny ” chiclet” ads and house advertisements on all sites. FIM also topped Yahoo by those measures. The comScore numbers reinforced recent encouraging News Corp. comments about the advertising potential of MySpace. The company reported earlier this month that FIM’s fiscal fourth-quarter revenue grew 23% from a year earlier to $225 million because of strong search and advertising revenue gains. The company also noted that interest in branded display ads was strong in the current quarter, adding that 50% of all orders included “hyper-targeting,” an emerging MySpace technology designed to deliver ads to specific groups of consumers. ComScore said FIM’s advertising strength was due in part to its edge over Yahoo in page views. FIM in July notched 41.4 billion U.S. page views, compared with 31.6 billion page views for Yahoo properties, according to the latest comScore data. MySpace also enables more advertisers to share a single Web page, resulting in more views per user visit, the research group said. Meanwhile, Yahoo has been under intense pressure to demonstrate to shareholders that it can jumpstart its online advertising business after rebuffing a $47.5 billion takeover offer from Microsoft Corp. (MSFT) earlier this year. Yahoo’s position as the top U.S. display advertising property has been seen as a critical element of the company’s strategy to build a unified ad platform that would enable advertisers to easily and cheaply place their search, display and video ads on the Internet. Yahoo has also said it hopes to raise the prices advertisers pay for display ads on its main sites, as well as lesser-known pages that usually don’t attract much interest from advertisers, such as Yahoo Mail pages and user forum pages. Yahoo declined to comment on the comScore data and MySpace was not immediately available to comment. Top display advertisers on Yahoo properties in June included Netflix Inc. ( NFLX), Nextag Inc., Experian PLC (EXPN), while FIM’s leading brand advertisers were University of Phoenix, Deutsche Telekom AG (DT) and Vonage Holdings Corp. ( VG), said comScore. Would you like to know more about Yahoo and MySpace? If so, contact Hit Search, Search Engine Optimisation and Pay Per Click specialists, on 0845 643 9289. Remember, its a big world out there, make sure you become visible. Leave a ReplyOther Related Stories That May Be Of Interest:
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