Big Profit Eludes – why?

This excellent New York Times article outlines how Myspace evolved from a spammy junk site to one of the internet's top destinations, second only to Yahoo in page views according to several sources.   I remain skeptical Myspace has more traffic than EBAY, but clearly they are huge and growing at a jaw-dropping rate from last year.  

HOWEVER, Myspace is NOT hugely profitable with only 1/20th the revenues of Yahoo, the top online destination in terms of pages viewed.

I think the explanation is simple – Myspace traffic is dominated by young onliners who are enthusiastic and spend many hours per day online but have little interest in most advertising and not much money to spend.   I doubt this will change.  

We've noted at our US history site, which appears to get most traffic from school searches, that it is hard to match users and advertisements.

About JoeDuck

Internet Travel Guy, Father of 2, small town Oregon life. BS Botany from UW Madison Wisconsin, MS Social Sciences from Southern Oregon. Top interests outside of my family's well being are: Internet Technology, Online Travel, Globalization, China, Table Tennis, Real Estate, The Singularity.
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