MySpace scaling revenues

MySpace is a service that has tremendous benefit and utility to its users, and in terms of an efficient, scalable business, is wildly underrated in the tech industry. Facebook et al seem to get more attention and have more sex appeal, which I think works to MySpace's advantage.

Plus the most interesting ad tech news of the year was what seemed like a little heralded acquisition from those folks. In creating an interesting business, with the potential for valuable advanced ad targeting, I watch what MySpace is doing. Particularly because Peter Kafka just wrote that:

Everyone knows that advertising on social networks and video sites is challenging, but the WSJ rehashes the story anyway (using three reporters!): CPMs remain low, most inventory goes unsold, marketers are connecting their brand with any anything-goes site, etc.

What the Journal doesn't play up, most likely because the news popped late Monday afternoon: News Corp.'s MySpace is finally making some headway selling ads. Its Fox Interactive Media unit, which is basically MySpace, generated $233 million in sales last quarter, up 86% y/y and up 24% from the previous quarter. Most encouraging is that Google's guaranteed search dollars made up just $62 million of that total, meaning that FIM's non-search dollars increased 43% y/y and 32% from last quarter.