Hypertargeting better than contextual for Social Networks?
Myspace’s new advertising program, named hypertargeting was recently launched, Myspace announced their plans for their new ad targeting system recently after the launch of Facebook’s Beacon which was covered well on Techcrunch, basically the hypertargeting system allows advertisers to target ads based on the information on the user’s profile, such as interests, occupation and other data as well as user actions.
According to Myspace, Google’s search dollars made $62 millions out of the $233 million that Myspace generated in revenue in the last quarter, this will place more strain and will be a good opportunity to see if the new hypertageting system will perform better than Google’s contextual ad system and which one is better for social networks. How well the Hypertageting system performs will also be a main indicator whether will Newscorp reach their goal of $1 Billion revenue in 2008 or not.
Social Media Ad company, lotame which specializes in serving ads for social networks and user generated content sites raised $10 million in a new round of funding, the company says that they figured out how to generate money out of social networks which are well know for their popularity and for their difficulty in selling ads on, which seems to be similar to Myspace’s Hypertargeting system.
All of this hype regarding this new method of ad targeting is exciting and might be the light at the end of the tunnel for social networks which so far have been struggling at increasing their ad revenue dollars especially after the not so popular Facebook social ads launch.
[tags]hypertargeting, myspace, facebook, social ads, social media, social networks[/tags]
