MySpace short on profits
MySpace, social networking site, will return profits ten per cent down on what it had predicted, its owner warned.
The site belongs to News Corporation’s Fox Interactive Media, which has said it will fail to reach its targets this year.
The announcement increases speculation that some social sites may have been over-valued. Peter Chemin, News Corp’s chief operating officer, noted: "It’s still difficult to quantify the economic value of a friend in the social networking space."
"Despite the obstacles we’re facing, what we’re accomplishing is extraordinary," he went on.
Marketers are increasingly searching for 360-degree campaigns, which are interactive and engage consumers as they move between media.
Facebook, currently valued at $15 billion (£7.6 billion), fell foul of members after introducing its Beacon advertising system without giving them the choice to take part.
