MySpace driving down the price of advertising

According to Rupert Murdoch, MySpace revenues are growing at 30% per quarter (Mashable).

According to Nielsen//Netratings, MySpace traffic grew 170% year-on-year (MediaPost).

Which means, I think, that while MySpace is making more money every quarter, it's actually getting worse at monetising the traffic it generates. Or to put it another way, its yields are declining.

I've examined this trend before - that online ad revenues are rising less rapidly than online traffic, especially for webmail, ad networks and social networking sites. Pure page-farm/volume plays are just getting less and less valuable - presumably because the supply of low-value inventory outstrips demand, while advertisers and buyers are looking for (and getting) better-qualified returns on their investment elsewhere.