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21 June 2010

MySpace embraces advertising platform

MySpace is embracing advertiser content in contrast to Twitter, which is trying to outlaw the practice of incorporating marketing content in its users' posts.

The social networking site has announced a deal with in-stream ad network Ad.ly that will allow MySpace users to publish advertiser content in their updates in exchange for payment.

In return, Myspace will take a cut of any revenue whilst users registered with Ad.ly can decide which messages from advertisers they want to support.

According to a MySpace, the integration of Ad.ly's platform will bring together key influencers with key marketers to broadcast targeted messages to their friends.

However, Twitter believes that party ad networks are not necessarily looking to preserve the unique user experience it has created.

Twitter COO Dick Costolo has pointed out that Twitter receives no revenue for carrying ads, but said the company's primary concern was forgoing near-term revenue opportunities in favour of monitoring the impact of ad products on user experience.

Meanwhile MySpace has instead opted to take a share of revenue for making its platform available for in-stream ads, though sponsored updates will be marked to help users identify them easily.

In a press statement, Derek Rey, VP of sales for Ad.ly, said the relationship with MySpace will help further scale its network, generating greater reach for its advertisers and would not be affected by the Twitter ban



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