SAN FRANCISCO, 6:05 PM, TUE MAY 13 | 31 POSTS IN THE LAST 24 HOURS | tips@valleywag.com | SUBMIT A TIP | RSS
« next »

News Corp. exec explains why MySpace traffic rose, revenues dropped

Chernin-Thumb.jpgSomehow, Fox Interactive revenues dropped last quarter despite traffic to MySpace, the News Corp. Web unit's main property, growing. News Corp. chairman Peter Chernin offered three excuses:

  • MySpace users click around so much and create so many pageviews that ad inventory supply outweighs advertiser demand.
  • It's hard to tell why a particular user is using MySpace, so targeting ads are difficult.
  • FIM is having a hard time coming up with convincing metrics to sell advertisers on the value of a friend's recommendation.
What Chernin didn't explain: Which of these excuses didn't hold true for the previous quarter, when revenues were higher.

9:00 AM on Thu May 8 2008
By Nicholas Carlson
337 views
2 comments

Comments

  • Image of MrMedia MrMedia at 10:13 AM on 05/08/08
    Reply by Email

    I don't get it. Why don't these people understand how the value of page views works? It's a basic supply/demand curve. Create more supply, it decreases demand. Decrease in demand means decrease in price of each unit.

    The more bogus page views they try to manufacture just drives down the CPM they can command.

    They should just charge users $5/year and get rid of all the crappy spam.

  • No commenter image uploaded ashkan at 07:19 PM on 05/08/08
    Reply by Email

    It's not that strange for an ad-supported site to clock in more revenues in the Oct-Nov-Dec quarter than the Jan-Feb-Mar quarter... more on this here:

    [watchmojo.com]

Comment on this post

Reply by Email

Login with your username and password below. Or comment on this post via email.