MySpace DIY ad system goes live

Small businesses or individual advertisers will be able to comb through millions of users with a click of a mouse, selecting their target gender, age, postcode, hobbies or musical preference.

MyAds will work on a per-click basis, much like Google's AdWords system, which generated $16.4bn (£9bn) in revenue for Google in 2007.

A basic advertisement will cost a minimum of $25 (£14.50) depending on the target market, rising as high as $10,000 (£5,800), which can be paid by credit card.

MySpace chief executive Chris DeWolfe said that the service is especially timely as small-to-medium size businesses, which are hardest hit by the credit crunch, have already begun to cut their advertising costs.

DeWolfe told Reuters: "If I'm a small business, I can't afford to hire an ad agency to do my creative. I can't afford to hire a graphic designer and I can't afford to hire a media buyer."

Users can create their ads using custom tools and a picture upload facility, and analytical tools help advertisers determine if their message is reaching its targets. Ads can be edited and tweaked at anytime.

The service went live today in a 'beta' version after being tested by 3,300 users for the past three months.

Last month, in a bid to become the world's biggest online music community, MySpace unveiled its MySpace Music service, which allows users to stream free music and purchase tracks.