MySpace hints at desperation with a new design in which more than 50% of its home page is taken over by one giant ad. We don’t mean an interstitial, one of those full-page web ads that temporarily interrupt you on a site before you click through to the real site’s content. We mean, most of the page is now a screaming billboard.
The redesign suggests MySpace is having a tough time making its ad inventory work. Don’t trust us; Bloomberg reported in April that MySpace’s abysmal financial performance had turned Rupert Murdoch’s News Corp. into a toxic stock. Valleywag noted recently that MySpace click-through rates are a little better than Facebook’s, but at 0.10% click-throughs, still aren’t anything to write home about.
But listen, MySpace, we’re trying to help. Look where your media peers have gone before. The $6 billion radio conglomerate Clear Channel once ran more than 12 minutes of radio spots per hour. Audiences began bailing, Clear Channel was forced to launch a “Less is More” campaign and reduce ad time per hour by 23% to 9 minutes and 20 seconds, and now the new Arbitron systems show that the radio audience may have slipped for good, with ratings down 30% or more in many markets.
Which brings us back to MySpace. McDonald’s and other advertisers are probably delighted they can now take over the MySpace home page. But as Ian Schafer, founder of the internet strategy firm Deep Focus, just noted on his blog, social media sites and related widget applications are going to have to show they can be a viable advertising model. The root problem for social media is that users have a different modality, and while in heavy socializing mode they are less receptive to advertising messages.
All of which explains why MySpace has put on more ad makeup.