Facebook & Twitter drive MySpace out of Playa Vista
Loss of revenues and market share to Facebook and Twitter appear to be pushing Rupert Murdoch’s Fox Interactive to axe MySpace employees and pull the plug on moving into Playa Vista. According to the LA Times, Fox is on the hook to the tune of $350 million for a 12-year lease of the office space they were slated to move into soon. Backpedaling, due to the down economy and their loss of market share and revenue, the blame seems to be attributed to online networking not being as financially rewarding as anticipated. For many, that means pink slips are on the way.
Fox hopes to be able to sub let the property to someone else. Good luck on that one.
Internet advertising declines: First time in 7 years
The economy has taken a stab at Internet advertising. According to an AP report out of San Francisco yesterday, the 1st Quarter reports show Internet advertising down by five percent in the United States. The 5% decline in ad sales is even greater than the downturn in the 4th Quarter of 2002, when we saw a 4% decline in Internet ad sales.
Looking at the silver lining in this story, total online marketing in the United States for all of 2002 was about $6 billion. The 1st Quarter of 2008 Internet ad sales were $5.77 billion; almost as much as the entire year’s receipts for 2002. Even with the decline of the 1st Quarter of this year, we still saw $5.48 billion spent in the United States for Internet advertising. Read more
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