News Corp. exec explains why MySpace traffic rose, revenues droppedSomehow, Fox Interactive revenues dropped last quarter despite traffic to MySpace, the News Corp. Web unit's main property, growing. News Corp. chairman Peter Chernin offered three excuses:

  • MySpace users click around so much and create so many pageviews that ad inventory supply outweighs advertiser demand.
  • It's hard to tell why a particular user is using MySpace, so targeting ads are difficult.
  • FIM is having a hard time coming up with convincing metrics to sell advertisers on the value of a friend's recommendation.
What Chernin didn't explain: Which of these excuses didn't hold true for the previous quarter, when revenues were higher.