MySpace offers video, must keep up with Facebook and Youtube

A short time after it was reported that Facebook reached more users in the UK than MySpace, CNN Money writes that the latter will introduce ad-sponsored video channels for its UK users. This could give MySpace an advantage over Facebook, when it comes to user experience, at the same time cutting into YouTube’s market of advertising on video content. MySpace will offer at least the drama Prom Queen, and will be using a similar format as Google-owned YouTube; an overlay advertisement on the bottom 20% of the screen, which links to the advertiser’s website. Also, the ads will only be placed on the video content MySpace has control over and not on user generated content.

What it offers in excess to YouTube, is targeted video advertising. MySpace users give a lot more personal information than YouTube users since MySpace is a social network. Video advertisers will be able to target on age, location, sex, and of course video content. We think that if MySpace can implement this ad system in a short time, it could outperform YouTube. Facebook could rely on its Gadget system for videos in the future, but this will result in third party, or unlicensed content which is much less marketable.

In short, we think the move into professional video by MySpace is a good one and right on time, too. As many online channels will merge and most of the larger sites will start to offer other services (YouTube will certainly become more of a community or at least linked with Google’s new social platform), we feel that marketers should keep an eye open for the fastest movers in the industry.

This entry was posted on Tuesday, October 2nd, 2007 at 12:41 am and is filed under Video Advertising. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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