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(Continued)     The RFS Newsletter, Sep. 15, 2007. Page 3
To ignore these changes would be a great mistake. Overall, the increasing growth in advertising and search revenue at sites such as MySpace is responsible for the unit's general profitability. Additionally, the numbers were far from many skeptics' concerns that advertising on social networking sites would never amount to anything significant. Now, all of this is changing very rapidly...

Social networking site (SNS) MySpace accounts today for about 80.8 percent of overall SNS traffic. According to eMarketer, in terms of advertising revenue, on any given day this accounts for approximately 57.9 percent of all SNS advertising revenues. On MySpace, overall advertising spending in the United States has increased rapidly from $190 million in 2006 to approximately $525 million in 2007. If SNS site MySpace can make this work, it would seem more likely that competing sites would too.

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