Doing The Math On MySpace: Who Gets The Failing Grade?
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.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Reader Comments
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Thank you
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interesting
Apparently we weren't the only ones who couldn't figure it out...
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Re: interesting
This time next year MySpace will likely be in the graveyard right next to Friendster.
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# of ads per page and shitty cpm rates
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.
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myspace is a shit hole
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No Subject Given
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Re: No Subject Given
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 :)
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Re: # of ads per page and shitty cpm rates
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Wired Defense
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.
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Figures used in my article
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Yesterday Wired.... today News.com. Ok... what's t
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Re: myspace is a shit hole
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Myspace
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Myspace and Google
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Re: Myspace and Google
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No Subject Given
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Myspace
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Re: Thank you
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*~*~*~*~
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Re: No Subject Given
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Myspace Rox and your all losers
kendra
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Re: interesting
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No Subject Given
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Re: myspace is a shit hole
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Re: Thank you
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Re: Myspace Rox and your all losers
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Why do you still exist?
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.
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The danger of myspace
I am pleading that we make this myspace.com a newsworthy matter so that ALL parents can be made aware of the dangers their children are being exposed to everyday.
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AOLSPACE
Check out the article
http://business.blognewschannel.com/index.php/archives/2006/01/23/aolspace/
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Re: Why do you still exist?
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Re: The danger of myspace
A Very concerned Parent
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Re: myspace is a shit hole
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Re: Myspace and Google
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myspace
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MySpace
FriendWise is currently accepting memebers to test the site before it's official launch on March 1st.
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Re: The danger of myspace
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Bad Parent
You make it sound like it's MySpace's fault that your daughter is lying and exposing herself to strangers on the Internet.
It's not appropriate to blame a Web site for your daughter's behavior, or for your choice to support it.
If you're concerned about your daughter, you should learn enough about the Internet and your computer to be able to supervise her behavior. You can put a login on your computer so that you would have to log her onto it before she uses it. You could put the computer in an open area of your house, so that people would be around her when she's online. You could let her know what your expectations are and what the ramifications are if she does not meet your expectations.
There are hundreds of ways for your daughter to get into trouble on the Internet. As a parent, though, it's your responsibility to keep her out of trouble. That means you can't blame MySpace or the Internet for what she does, YOU need to actively parent her.
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Jeff Howe is an idiot
a) To shield the TRUTH from the American people AND advertizers about the huge plunge in viewership of television across all demographics (especially the critical demographic - young people)
b) To reshape the American Mind into a sort of thuggish nationalistic obedient population by anointing producers who produce shows that conform to the AGENDA of desexualization, the breakdown of teh individual, the implementation of fear and isolation and control into the american population. And how do they do this? It's easy - with shows like COPS which they say is one of the most popular shows ever - the fact is it is not.
Jeff Howe is a nieve no brained asshole who knows nothing about anything.
To get the facts about your world go to http://www.voxfux.com
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Re: myspace is a shit hole
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Delete your kids' accounts
*Peace*
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real life happens when you delete your worthless myspace account...
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Behind a PC
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Re: Re: Thank you
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myspace
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myspace
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you ppl are gay
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you ppl are gay
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Re: you ppl are gay
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tom
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one of the best thing ever
Myspace is awesome but som eppl dont apeceate it they just messing it up for everone and TOM!!!
fuck everone that dont this comment and everyone else bitch..........
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Re: one of the best thing ever
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Re: myspace is a shit hole
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who needs it?
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What the fuck?
1) Who cares what myspace makes as a profit... is it going to change anything that happens to you!
2) If you dont like myspace dont visit it... retards!
3)If you dont want your kids on the site dont let them use the fekin computer... get a grip you are parents, not lawyers, discipline your children not people who are running internet business's for a living!
Myspace is a good website this is obvious due to its overwhelming popularity... if you disagree then you are an idiot with a very low i.q!
GOOD DAY!
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FUCK RUPERT MURDOCH
Quote, " It is up to you, and only one, to spread the word and reach more people who will indeed create a chain reaction which will be the downfall of a corporate giant."
Quote, " Where are they getting these numbers from this isn't calculus, hell I think bush is playing the fucking Lottery"
Quote. "Fuck Myspace"
Quote, "Fuck Rupert Murdoch the little slitchering snake bitch needs to fall are and die and then in his will give his money to charity"
Quote, "You Fucking Cockroach" - Scarface
All other quotes are from "A Genius
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Concerned Parents
She will have a new account tomorrow from her friends house, the library, internet cafe, etc.
Why don't you try being a parent first. If your kid had drugs, would you secretly throw them away while she's at school and think the problem was solved?
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Fools
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Re: Delete your kids' accounts
Now how can we close?
s.o.s.
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Re: No Subject Given
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Re: Re: The danger of myspace
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My Space, Rupert and who gets hurt
This is just pure ignorance. You think profit making corporations don't have anything to do with what happens to you?
Look dittohead, get it out of your ASS and learn how your economy works and affects your life!
I hope you are not older than 10. Go back to school and this time PAY ATTENTION!!!!!
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Re: Behind a PC
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conserned parents and myspace
and god forbid they spank there kids now days for messing up but due to right wing neo nazi morons that say" spanking your kid is wrong!" they dont ! or even ground them you do know whut grounding is right people? .... means ya sit in your room with a book period no tv, no computer ,no vid games, no telephone, no cell phone, no nothing but a book and maybe a stereo thats it thats grounding and they have no clues to what there kids are doing online then when the kid get in truble or makes a web page with god knows whut kinda language or pics they are quick to blame the sites and make some stupid law suit to shut them down kinda like the judas priest trial in the 1985 some kids were "listening" to them went and made a pact to commit suicide parents blamed the band saying there was sublimital messages maybe just maybe had they been parenting they would have seen signs to there kids probs ! theres soo many ways to "monitor" your kids online activitys move the computer to a high traffic area in the home block certin sites, password the computer, key loggers netnanny and other web blocking programs and for gods sake sit with your kids while they are online!
stop blaming web sites or even web services for YOUR kids actions blame your self for NOT PARENTING RIGHT!
im forty years old been a punk rocker sence 1979 i have NEVER EVER WANTED TO KILL MY SELF NOR GO OUT AND HURT SOMEONE ELSE JUST CUZ I LISTENED TO MUSIC i also got spanked as a kid for "messing" up and never once did i feel i needed to beat my kids with a belt 900 times for messin up or twist there arm till it broke theres a fine line of abuse and disopline 5 times on the ass makes the kid think! (and ya i know u cant zatcly spank a teen )not on the arm or leg or head on the butt! wake the hell up you " consernd" parents and take back parenting! and stop blaming others for your parenting faults!
and for the morons that worry and whine about how much $$ tom makes dont.. he saw a opertunity to make money and ran with it ..... ya all know whom bill gates is right? did the same thing started microsoft now we got windows to run all of our puters and yes bill was sneaky and decitefull we all know that but look at him now muliti billionare
and yes there are other opertating systems out there like linux and knoppix and yes mac computers its a comparison
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idiot
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.
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I thought this was funny and figured I'd drop a line. Its actually no ones business how much I or any one else involved with MySpace.com makes. I just wanted to let you all know we are going no where and are here to stay!
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social networking
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Re: Thank you
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Fuck you Murdock!
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Re: The danger of myspace
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Shut the fuck up.
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flashiology
www.flashiology.com.
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Style sites information
I want to share the sites.
1. http://www.beamash.com it provides all of electronic devices especially bluetooth devices and memory sticks.
2. http://www.sestyles.co.uk they deliver ladies handbags, purses, etc.
I love both of the sites. I think you guys also love this
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