Bronte Media

Social Networking CPMs

February 12th, 2008

Now that News Corp is by and large disclosing MySpace’s revenue figures on a quarterly basis we can see whether CPMs are going up or down.

How? By comparing revenue growth with usage. Revenue = usage * CPM.

First revenue: “meaning that FIM’s non-search dollars increased 43% y/y”

Now usage: It looks like comScore thinks that MySpace’s worldwide UV in the fourth quarter was around 100m uniques per month, up from around 80m uniques per month in the corresponding period a year ago.

So if that is 25% UV growth, and 43% revenue growth, that means CPMs went up by 14%.

Conclusion CPMs are going up but not by much and not by the factors they need to be for them to be great businesses instead of very good ones.

2 Responses to 'Social Networking CPMs'

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  1. Henrik Torstensson said, on February 14th, 2008 at 7:47 pm

    For CPMs, wouldn’t you look at pageviews rather than unique visitors?

    Henrik

  2. nikiscevak said, on February 15th, 2008 at 10:58 am

    Henrik, true enough but they re-load ads based upon time now that ajax is a bigger part of the site.