MySpace plans redesign to solve 'social networking' profit riddle, NYT reports

Social networking giant MySpace will undergo a redesign beginning this week in a bid to boost ad sales, The New York Times reports today.

Social networking giant MySpace will undergo a redesign beginning this week in a bid to boost ad sales, The New York Times reports today. According to the Times, when News Corp. bought MySpace, it set an ad revenue goal of $1 billion, but it will likely fall short of that goal when its fiscal year ends in two weeks.

The redesign will make more room for ad sales, and include a navigation tool bar, search tool, and video player. While social networking sties, including Facebook and Bebo, often factor prominently into PR and marketing campaigns looking to reach particular audiences, many say the sites have yet to prove their ROI in dollar terms.

“The jury's still out on MySpace's ability to monetize,” Michael Nathanson, an analyst at Sanford C. Bernstein & Company told the Times.

To "solve the social networking riddle," the Times points to MySpace's constant PR on its new features and partnerships with press releases. Making ads more effective, though, remains a challenge, the article says.

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