MySpaceTV could be an attractive space for retailers’ ads

The social networking site MySpace has launched a test version of a dedicated video site called MySpaceTV. With access to professional content from parent company News Corp., it could be an attractive advertising vehicle for retailers, says analyst David Hallerman of research firm eMarketer Inc.

“Few advertisers want to put their ads against user-generated content because they don’t know how it will affect their brand and reputation,” Hallerman says. “With professionally created content, you know more what you’re going to get.”

He says this is why there is relatively little advertising on YouTube, the popular video site now owned by Google. While Google does not break out YouTube’s advertising revenue, eMarketer estimates it at $15 million in 2006. By contrast eMarketer projects U.S. ad spending on social networking sites will reach $900 million this year, with 72% of those ad dollars going to market leaders MySpace and FaceBook.

Hallerman says MySpace remains identified with younger consumers, and it remains to be seen if MySpaceTV can broaden that audience. One factor in its favor, he says, is that MySpaceTV will be accessible to all web users, whereas MySpace requires registration.

MySpace says the number of individuals accessing video from the MySpace site has gone from 35 million in January to more than 50 million in April as the company added video content from the Broadband Emmy Awards, professional basketball and hockey leagues, The New York Times newspaper and other sources.

In addition to the U.S. site, MySpace says it has created localized MySpaceTV sites in seven languages in the United Kingdom, Japan, Australia, France, Germany, Ireland, Italy, Spain, Mexico, Canada, the Netherlands, New Zealand, Latin America, Sweden and Austria.