With Google tightening its belt across the board, its $900 million deal, which expires in a year, with MySpace will be a hit to the bottom line, though another, less lucrative, deal is expected to take its place. EMarketer says that ad spending on MySpace through September 2008 was $425 million. MySpace has added HyperTargeting, ads based on members’ profile data, a self-serve targeted ad system for small businesses, and next year will add e-commerce revenues from MySpace Music download.
Facebook, which said it projected between $250 million to $300 million in 2008 revenue, is also working out the kinks in specific advertising sales. Though it has brought in money from virtual gifts, eMarketer says thtat advertising represents 85 percent of it’s revenues and has added video ads that users can leave comments on, as well as branded virtual gifts.
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