MySpace Announcing New Ad Platform

On the heels of Facebook’s Social Ads announcement tomorrow, MySpace will be announcing announcing a new “hyper-targeted” ad network that, as Vauhini Vara reports, is “a self-service way for users such as bands, politicians and small businesses to buy advertising on the site.” In contrast to Facebook’s new ad network which is a mixture of text and image ads, the new MySpace ad network will be for dispaly ads.

Similar to Facebook’s upcoming ad platform, “MySpace uses proprietary technology to build a detailed profile of each user and their friends, including age, gender, location and interests,” Duncan Riley adds. MySpace’s announcement may be a strategic one to avoid the image that they are following behind Facebook, the soon-to-be leader in the social networking space.

Rather than advertising by specific keywords, advertisers can select from more than 1,000 subcategories of users that they can target. According to Techcrunch, “there are over 300 subcategories for movie lovers alone.” Things in the social networking space are beginning to heat up as MySpace and Facebook both announce their entry into the advertising space. As I suggested this morning, this may all be followed up by an announcement by Google who is also working on their own social advertising service (although details are significantly limited and this is pure speculation).

While new social advertising services will probably become widespread, these new advertising models are still unproven. We are at the early stages of a revolution in targeted advertising. The launch of social advertising platforms are only a first step.