MySpace is getting more users (currently about 118 million) but it is not getting much ad money because  users do not view ads, no matter how carefully the ads are placed. Many other social networking sites (MySpace, Bebo, Facebook, etc) and video sites (YouTube, MetaCafe ,etc) are not getting much either because users are not visting to buy things. They came to make friends, flirts, watch funny videos, etc.

The solution?

“So what can speed up ad fortunes for social networks? Social ads are Facebook’s first step. They can take social actions, such as a user’s identifying himself as a Nike fan, and pair it with an ad tailored to that user’s friends. “Your friend is a fan of Nike,” the ad would say.” – NYtimes.com

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