MySpace to Improve its Yield?

GigaOm reports on the possibility of Fox Interactive Media acquiring Strategic Data Corp.

According to its site:

Strategic Data Corp provides online advertising networks with the world’s most sophisticated yield-optimization technology. Right now, our software is automatically maximizing the profitability of each individual impression served by many of the world’s most succesful online ad networks and publishers across tens of thousands of advertisers and publishers in real-time. Each of our clients has seen dramatic, measurable increases in revenue and ad performance.

If its as effective as it asserts and the acquisition takes place, this is the type of move that I love. Often, the centerpiece of an acquisition is a company which the acquirer believes will provide it the opportunity to diversify its revenue stream. Although that may be an ancillary benefit in this case, it seems that Fox could reap a much bigger reward by aiming the sites of this seemingly powerful technology on its flagship product-myspace.

When companies seek growth, it seems to me, that operational excellence is often overlooked. In the case of myspace, the site is an advertising based product and much of its operational excellence comes from better monetization of its advertising inventory. Why not clean up it’s ad serving and in turn improve the profitability of each of those millions of web pages served each day?

Answer: It seems that Fox has already figured this one out without me…

Tags: Fox, Strategic Data Corp, advertising, myspace, yield management, CPM

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