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Facebook monetizes up to 40 times better than MySpace
May 17th, 2006
| By Justin Smith | 10 Comments » |
This week’s New Yorker magazine has a lengthy piece by John Cassidy on Facebook, including an interview with Mark Zuckerberg. The most interesting part of the article touches on how the access controls that Facebook gives users yield more monetizable content:
Eighteen months ago, the going rate for a banner ad on social-networking sites was pennies per thousand page viewings. Today, the rate on MySpace is about ten cents, and Facebook, with its upscale demographic and unobjectionable content, can charge more–as much as four dollars per thousand page views.
In a world where revenue is as simple as page views * CPM, would you rather have 10x the page views or 10x the CPM of your competition? Make your bets accordingly.
More at attentiontrust.org…
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May 17th, 2006 at 9:38 pm
Correction Coming as Social Nets See Traffic and Ad Prices Boom…
The Social Software Weblog reports that the top 10 social networking sites saw traffic grow 47% over the last year, according to Nielsen. MySpace had the biggest growth at 367%. See the chart below for more. (MySpace is an Edelman…
May 18th, 2006 at 3:11 am
$4/$0.10 = 4000% (40x)
May 20th, 2006 at 10:31 pm
Information Abundance, Attention Scarcity…
Thanks to RSS implementations that let users control where their attention goes, and content management systems that ease the production of digital goods, it is the attention of users that is increasingly scarce. That scarcity of attention contributes …
May 22nd, 2006 at 4:47 am
[...] Because CPMs are so low in the social networking business, Facebook is rushing to compete with MySpace for premium advertising dollars by creating promotions that create community in its demographic around the advertiser’s brand. For instance, 100,000 MySpace members recently became friends with the Wendy’s Square). [...]
May 26th, 2006 at 1:18 pm
Hi, does facebook/myspace have CPC ads running? Do you know if they utilize other ad networks? What do you think they have for CTR? I think I read you cannot if you already use adsense due to google TOS.
August 23rd, 2006 at 3:04 am
[...] Currently, Facebook sells ads through an inside sales force, AOL-owned Advertising.com, and DoubleClick. As of tonight, no ad sales positions are listed in Facebook’s job postings. Historically, social networking sites have had a hard time monetizing their traffic through traditional CPC and CPM ads, though Facebook is rumored to perform better than most social networking sites in general. It appears that Google’s initiative with MySpace lit a fire under Microsoft BD leading to what are likely very favorable terms for Facebook. No word yet on guaranteed payouts over the life of the deal. Posted by justin.smith Filed in General [...]
July 11th, 2007 at 1:40 am
[...] “Inside Facebook quotes a New Yorker report that the going rate for a banner ad on social-networking sites was pennies per thousand (CPM). Today, MySpace’s CPMs have risen to about ten cents, while Facebook commands a whopping $4.” [...]
January 29th, 2008 at 10:12 pm
[...] cost per thousand ad impressions (CPM) for most publishers that I’ve seen hovers between $1 and $3. MySpace advertising goes for $0.10, Facebook for $4. Higher end sites like the New York Times can charge as much as [...]
April 24th, 2009 at 7:41 am
I have a very simple question here: if we advertise our blog/site in facebook, where does facebook put up the ads?
September 12th, 2009 at 10:31 pm
[...] Sites like Facebook and LinkedIn, with advanced privacy controls and detailed profiles, can command much higher CPMs than sites where users remain completely anonymous (such as a news portal). In other words, online [...]