Myspace Ads Beta: First Impressions

Yesterday, Nickycakes let everyone know that the Myspace Ads self serve platform was up and running.  Today, he had a chance to see it in action for himself, made some money, and learned quite a bit in a short period of time.  Here’s the scoop:

If you’re familiar with Facebook Ads, this is going to be easy for you.

A few general things first.  Myspace has A LOT more users than facebook.  Much wider audience, which means a lot more impressions to go around.  They also have many many more international users.  The ad formats are much larger.  You can choose between a 728×90 banner and a 300×250 box ad.  In these ads, you can draw pretty much whatever you want.  So it’s going to take a little more effort than the 110×80 dinky facebook ads, however, it also means a much higher chance for someone to click your ad.  1% CTR’s should be no problem to get if you have any idea what you’re doing.  

Ok, here’s how to get started making money with myspace ads, step by step, for the complete retard:

1. Sign Up to Affiliate Networks


Most of you have done this already, for those that haven’t, you will need something to advertise.  Unless you already have your own high converting website and product, you should probably get signed up to one of these affiliate networks using the links below.  Yes, these are Nickycakes’ affiliate links, which means if you have any questions about any of this stuff, and you ask for his help on IRC, you’re much more likely to get a real answer if you’re signed up under him.

Advaliant

Ads4Dough

CX Digi

Copeac

Neverblue

CPA Empire

Seriously, go sign up to all of those right now so you can get the approval process going.  If you’re having any trouble with the approval process, CALL THEM during normal business hours, and if that fails then come on IRC and bug Nicky. 

2. Pick Your Offer

Ok, “offer” is misleading.  Unless you already know what works for this demographic and are just porting your facebook campaigns over (not recommended due to much more relaxed approval practices) you’re going to want to pick several offers to test.  Remember that you’re bidding on demographics, not really keywords, so think of what certain demographics would buy.  Ringtones and crush offers for teenagers is a winner obviously.  Dating is always solid over 18, etc.

3. Make Your Ads

Honestly, you may not even need to do this part, as most offers already have pre-made ads (creatives) that you can use, in both the 728×90 and 300×250 sizes that you need.  If you decide to make your own, the sky’s the limit pretty much.  The myspace terms say no celebs, and you’re obviously not going to get nudity approved.  If you’re so inept that you can’t crank out a banner ad in photoshop, or can’t figure out how to steal someone else’s, then it shouldn’t be too expensive to get someone to design some for you (please, someone start an affiliate program for their site/banner design service, thanks).  No animation allowed, and 600k is the size limit for the graphic files.

4. Submit Them To Myspace Ads

If you didn’t already get started, here’s the link to Myspace Ads.  Basically you have to create an ad first and then it will prompt you to sign up for an account.  It is NOT linked with your regular myspace account, so if you’re worried about submitting some shady type ads and getting your precious myspace account banned, worry no longer.  

After you’ve submitted your graphic and named it, you will be prompted for a destination url and demographic targeting.  Please note that there is a bug that isn’t letting prosper202 landing page destination urls through properly, so you’ll want to make a php redirect on your server that redirects to that destination url.  That may sound complicated but it’s not.  You just make a file called, lets say, destination.php in the root of your landing page domain, and in that file put something like:

<?php

header(“Location: http://www.yourlandingpage.com/?t202id=asdfad&t202kw=”);

?>

And use http://www.yourlandingpage.com/destination.php as your destination url in myspace ads.  Hopefully this bug gets fixed soon.

[edit] This bug with p202 urls isn’t affecting everyone.  If myspace lets you submit your url, then you’re good.  It will work fine.  If it rejects the url and says you need a “valid” one then you can use this script.

5. Choose Your Budget

Pretty straightforward.  You choose how much you want to pay per click, and how much you want to spend on your campaign, and what dates you want it to run.  There are a few catches at the moment, though.  First, minimum bid per click is .25.  You will never pay less than .25 per click, period (at least at the time of writing this).  The max budget for the campaign is $10k.  This seems to be for the life of the campaign.  This sucks because you will likely have to re-create an ad after you have spent $10k, which could potentially happen very quickly (in a couple days, if things continue this way for Nicky).  Also, there’s no “forever” option for campaign dates, a minor annoyance.  

6. Payment

This part is straightforward as well.  At the time of writing this, they’re only accepting US advertisers.  This confirms what Americans have known for years: foreigners don’t matter.  Billing seems to happen incrementally.  They bill you once you hit around $200, then $500, then $1000, unsure after that.  Fortunately it’s not like facebook where they gradually raise your daily budget.  These myspace peeps actually seem to know what they’re doing unlike the drunk college intern retards over at facebook.

7. Ad Approval

Here’s where things get juicy.  At least for now, they seem to be approving EVERYTHING.  For long time facebook advertisers, this is AMAZING.  The only thing they deny are trademarked logos and celebrities, it seems.  Want to run ringtones? HAVE FUN BITCHES!  The first ads Nickycakes submitted in the evening weren’t approved until about 18 hours later, but people were reporting 10-20 minute wait times for approvals later in the afternoon today.  Also, the ad approval process is clearly NOT done in order.  Some people’s ads are getting approved way out of order.  There are a few possible explanations for this.  1) They just have a retarded system that selects random ads for them to approve. 2) They may favor ads that have a higher budget, or higher bid per click, or 3) It actually IS in order, and they’re just unsure about certain ads, so they forward them to their manager or whatever.  Either way, it’s pretty much open season at the moment, so get your ads in while you can!  You’ll get an email when your ad gets approved/disapproved, so no need to keep refreshing while you wait.

8. Traffic and Stats!

Ok, if you’re smart, you’re using tracking software such as Prosper202 to see your traffic coming in.  If you don’t like laggy ppc stats, you’re going to HATE myspace ads stats.  They update every few hours with a snapshot of your stats, which is really not usable if you’re testing out a high budget campaign.  Also, the traffic starts VERY slowly and then ramps up if your ad does well.   If you’re not sure how bidding vs CTR works to determine how much traffic you get, then here’s a quick recap, even though this was discussed at great length during the beginning of facebook ads:

Basically, they use the CTR for the ad times the BID you set to figure out, on average, how much they’re going to profit for each impression your ad gets.  For example, if your ad has a .50% CTR, meaning 1 in every 200 people click your ad, and your bid is $0.30, then, on average, myspace knows they will get $0.0015 each time your ad is shown (.50% x .30$ = $.0015).  This means that your CPM (cost per 1000 impressions) is $1.50 ($.0015 x 1000).  So what Myspace does is they look at your CPM for your ad, and compares it to the CPM for everyone else’s ads that’s bidding on the demographic, and whoever has the highest number (the most potential profit for Myspace) wins.  For this reason, if you have an extremely high CTR, you can bid lower per click than your competition and still get all the traffic.  

Unfortunately, at this time, Myspace has made a few mistakes with their bidding system (at least they’re mistakes in Nickycakes’ eyes).  

First, and most importantly, they have set a $.25 minimum bid for all clicks.  This creates an artificial price floor on the traffic.  While, at first, this seems like a great idea for them, it will actually drive away potential advertisers and create a surplus of advertising space which will end up being sold off for lower prices anyway to advertisers from google and such, which means myspace is not only screwing advertisers, but in the long run screwing themselves.  This part is maily for the people running Myspace ads, if they’re reading this:  A user willing to pay $0.10 per click with an ad with a 1% CTR is going to spend $1 per 1000 impressions, whereas a user willing to pay $0.25 per click with an ad with a .3% CTR is only going to spend $0.75 per 1000 impressions.  Do you really want to lose those $1 cpm customers??  Seriously, for a company potentially worth billions of dollars, you figure they could put an undergrad with at least freshman econ classes under his/her belt in charge of these decisions.  Here’s a refresher for you morons:

Second, unlike pretty much every other self serve advertising platform in existance, including google, yahoo, msn, facebook, and even the morons at failure 2nd tier search engines, they don’t adjust your click cost.  This means, even if you have an amazing CTR, you will be charged the FULL PRICE that you bid per click, NO MATTER WHAT.  This is either done out of greed or they just haven’t coded automatic bid adjustment yet.  If it’s greed, it will end up biting them in the ass as advertisers budgets are raped quickly causing them to drop out of the market in frustration.  
 

9) Profit! 

Nickycakes spent about $1k in the last 24 hrs and made back about $2k.  The potential is certainly there if you know what you’re doing, but as mentioned earlier, the $.25 per click minimum is going to keep a lot of potential advertisers money safely on facebook ads.

PS. If you know anyone working at myspace, specifically people working on the ad platform, please let them know about this so that the problems may be fixed and everyone, especially myspace can make a lot more money.

keep it real.

Peanut Gallery

  • lol, we just learned about price floor in MicroEcon. Quick question (from a n00b), but can you create your own creatives in A4D? Or just use contextual links? Not sure how that works yet.

  • use contextual link

  • Fack that! I’m pissed, besides what you mentioned, they also left a lot of $$ on the table when they didn’t include the Canadian advertisers. Bunch of bitches!

  • GREAT POST DUDE! Took me 9 hours to get an ad approved yesterday.

  • Excellent post Nicky, I’m not in the US (I’m sure I’ll find a workaround) but this definitely helps, thanks for the effort.

    Cheers,
    Glen

  • Nice overview for Day 1 – thanks for sharing! Sucks that alot of my aff’s are outside of the US and are standing on the sidelines right now.

    If any of you need to reach me (pending application at Advaliant or otherwise), I’m online most of time. Like Nicky said, just ask him for my IM info or email me.

  • It’s been nearly 24 hours and my ads are still ‘pending’… f’ing sucks waiting it out.

  • Any idea when you yanks will open this up to the great unwashed in Europe.

    Would be nice to get a little of the early action before you guys clean up, and the users wise up.

  • hey Hicky have you noticed facebook ads went down last night. also when i logged back in today the link to ads & pages on the right side of my facebook homepage is gone. i think they are applying the new wider design to it and its tripping out…

  • I thought I read somewhere that the ads had to point to a myspace profile; is that incorrect?

  • Just wanted to point out that when you enter in a destination URL, make sure there’s not a space at the end. I copied and pasted a URL into the destination box (which I had an extra space at the end) and I got the invalid URL notice. Once I removed the blank space at the end of the URL in the textbox, it validated correctly.

  • I’m already signed up and waiting for my ad to get approved. Seems to take quite a while. I guess it’s hard to read an ad and see if it contains a celebrity’s name.

  • you cant use their system if your using a mac. They should work on that asap

  • Took about 10 hours for approval. So far so good!

  • @Nicky — are you sure the P202 bug isn’t due to the HTTP:// in the link you’re putting in? I kept getting the same damn error and tried replacing the links over and over, only to realize I didn’t take it out of the damn link.

    Now every URL I use works fine. Felt like an idiot, though.

    Excellent post.

  • Congrats on approval. 26 hours and still no approval here. :-(

  • One ad approved. TWENTY impressions! That isn’t a typo 2-0! I’ll be rolling in the dough in no time.

  • I would imagine those click through rates are because the adverts are new users haven’t seen them before. It wont be long today before the CTR drops to facebooks level. 9’000 impressions no clicks so far today on facebook for me :)

  • Great post Nicky! Very informative.

    If you have issues with your app or want to follow up, feel free to email me, call, or ask Nicky to inquire for you.

    I’m sure you’re aware of the competition but don’t forget the new pub bonus as well ($750 bonus for $7500 rev generated within your first 30 days). Many pubs don’t know this.

    Winkie – CX Digital

  • Nick
    Great post. thanks for the info on the new platform.

    sounds like we have a winner and great new inventory to work with. Lets us know what offers you all want from Advaliant to help you monetize!

  • @gdubs – I am on a MAC and am using their system without any problems.

    However, I have loaded several campaigns and I agree their approval process is jacked as some of my ads are getting approved out of order.

    Any clue as to what areas these ads display in on the myspace website?

    Steve – Convert2Media

  • @Steve – I was wondering the same, to be honest. I remember there used to be 300×250 Ads on the Account interface, but those seem to be using strictly MySpace ads (for their music section(s)) only.

    I’m at 20 hours and still pending. Damn!

  • welcome back home cakes…and thanks for sharing them info. I though u gone on exile already lol.

  • good post, can’t wait to try myspace ads.

  • Hahahah.. you’re so funny.. “first impressions”. ;)

  • Good review post. I have a lot of the same thoughts on the system… Still easy money for those who can abuse it while it’s open season.

  • I got approved, 299 clicks and no sales

    by Willie Lawrence
  • @gdubs It doesn’t work on my firefox 3 for the mac but it does on Safari.

    I think I must be an idiot becasue I’ve spent $300 and only have made back $100.

    @jonathan .. give me some tips! I am running dating and ringtones with no success! FKUC!

  • Very cool, of course thanks for the mention as always! but this shared some insights to the myspace platform because even as lucrative as it sounds!! I have to keep trying to hammer away php, but people should definitely jump on this, just like facebook was extremely lucrative in the beginning, and of course, even though people can still make money, its always a little bit harder. Happy Hunting!

  • So does that mean Myspace is only accepting USD Credit Cards, or US advertisers all alone?

  • Does anyone know where the ads show up? I can’t find where these ads show up anywhere.

  • @gdubs
    I now tried a few browsers on win (ff3, ie7, opera, chrome) but always get an javascript error or no browser reaction at all when I try to start a campaign.

  • Do you know if you already do google content and have ads that already show up on myspace if you sign up on myspace will your ads appear more than the google content match users?

  • If this hasn’t been mentioned already. If you’re out of the US just use a fake US address with your card and you can setup an account.

    Success,
    Smaxor
    President, Ads4Dough.com

  • Hey Amanda,

    I target MySpace through Google content network Placements and I have seen a huge drop in traffic from my Google content network MySpace Placements.

    Now I am going directly through MySpaces self serving ads for about the same price that I was paying through the Google content network MySpace Placements.

  • Thank you for suggesting a network. I would like to join it.
    I think its better advertising option. As there are free impression in plenty.
    But i think it works not better.

  • Know what, so far I haven’t had any success. All the offers convert pretty badly, although I tried to target them demographically etc; And I absolutely HATE the campaign interface!!! So f*cking lame! You can’t sort, delete, there’s no filtering by date, price, type or anything at all! I won’t be able to come up with worst reporting if I wanted to! And for split-testing of anything you basically have to create additional campaign?! This is not even alpha, nevermind beta. And yeah, you can’t even display a bit of naked body, even if it’s just a decent-looking part of someone’s stomach.. What’s up with that, really – especially when you choose your demographic settings as “Women from 35 to 55″ – TV is full of that shit even if you watch morning news, yet Myspace doesn’t allow it? Duh..

  • One more – if you have more than 3 campaigns (apparently you can’t delete campaigns you don’t want anymore – yes!) – you can’t see how much you spent TODAY on each one of them without running their heavy flash-reports one-by-one! It’s 21st century AFAIK! Apparently those guys are still in 1998

  • Another thing – just discovered! I found out that all clicks I sent to particular pin-code offer came from sites like city-data.com, coolest-gadgets.com and others, totally non-related to Myspace!

    Damn, I could buy traffic from Google much cheaper than $0.25 – that’s just ? They’re simply reselling adsense for profit, is that how it is? I am feeling pretty f*cked.

  • Nefig: Can you please tell us your credentials? Yes you can buy cheaper ads on Google but do you have more success with it?

    Not that I’m bashing. First, I’m new to the game, and second, your rants I agree 110% with (Fuck the flash interface). It’s just that your opinion doesn’t mean much if nubs/pros are making $1K/day on MySpace and you’re not – do you make anything on Google?

  • Great post! Unfortunately myspace is currently reviewing their policy on dating ads, so they aren’t accepting any new campaigns in the dating vertical. On the other hand, good thing they did away with the .25 cpc minimum. One of the nice benefits about myspace is relatively cheap traffic that converts well.

  • Nicky, what do you think about MySpace now? Especially considering how Facebook is tightening up their TOS.

Add a new comment