MySpace Ad Sales Out-Hustling Facebook's

Nicholas Carlson | November 11, 2008 7:33 AM

Everyone knows Facebook is having a hard time selling ads. But did you know how badly it's being outsold by less popular social network MySpace? Jessica Vascellaro laid it out in this morning's Journal:

[Facebook] says 70 of the U.S.'s 100 largest advertisers have advertised on its site since 2007. But its share of total number of U.S. online display ad views was just 1.1%, according to market research firm comScore Inc., in its most recent report in June. News Corp.'s Fox Interactive Media Unit, which includes rival MySpace.com, is the market leader with 15.9% of display-ad spending, according to comScore.

More old numbers that bear repeating: With over 120 million active users Facebook expects to earn only between $300 million and $350 million in 2008. MySpace sold Google on a revenue share deal that pays more than twice that. Doesn't Facebook know third place is you're fired?

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9 Comments

Tom Buchok (URL) said:

Nov. 11, 9:03 AM

You wrote: "[Facebook is] being outsold by less popular social network MySpace."

I am of the impression that MySpace still has more users and, as you just illustrated, more advertisers (revenue).

I'd agree that Facebook is more chic, but probably not more popular.

Thoughts?

Coffee is for Clothiers said:

Nov. 11, 9:30 AM

Partially because of the repeated references on this blog, I recently watched "Glengarry Glen Ross". Great performances all around. And I feel even worse for Alec Baldwin's daughter now.

Nicholas Carlson said:

Nov. 11, 9:39 AM

@Tom Buchock, Facebook is more popular internationally: http://www.washingtonpost.com/wp-dyn/content/article/2008/06/23/AR2008062302094.html

But what amazes me about this is how much MySpace is ahead of Facebook, even though digital agency execs tell me they hate spending client money on a trashy place like MySpace -- mostly because they don't want their ads associated with the scammy ads MySpace started out with years ago

Beanie said:

Nov. 11, 10:52 AM

I am a salesperson, I have no qualms about saying that. I don't feel like it brands me with a Scarlet "A". But a lot of people do and from what I hear that is the corporate culture at Facebook.

If everything you are about is privacy and permissions you might have the most liked site. But very likely not the most profitable.

CV said:

Nov. 11, 11:40 AM

I'd be interested in comparing only MySpace versus Facebook and not Fox Interactive and Facebook. FIM includes other entertainment sites (such as IGN) that are category leaders and may be one reason why they are pulling in so much advertising. If I were in sales, I would be pitching those sites with MySpace filling in the RON and Added Value. Facebook on the other hand only sells their site so the comparison isn't exactly apples to apples. One interesting side note - Microsoft is selling Facebook internationally. It's possible that a Facebook/Microsoft combination of display ads globally would show a closer percentage of market share compared to MySpace and FIM.

Scott Rafer (URL) said:

Nov. 11, 11:54 AM

You can't include the Google-MySpace search deal and then exclude the M$-Facebook search deal. It'll have minimums too.

John Furrier (URL) said:

Nov. 11, 11:55 AM

guys
at least link to the video of the epic scene from the movie... not doubt the best sales motivation video of all time..

posted here on my opinion blog

http://furrier.org/2008/10/30/john-doerrs-advice-find-coffee-drinkers-because-coffee-is-for-closers/

yes facebook seems to be struggling with brands...as as a user if i hear engagement one more time I'll be sick.. how about giving me value instead..now that's a concept worth monetizing

Aaron Cohen (URL) said:

Nov. 11, 1:21 PM

I'm just impressed with the image attached to this post. Well done Nick.

keith said:

Nov. 11, 2:45 PM

"Second prize? Second prize is a set of steakknives"