MySpace is by far the most valuable social network. - Inspired by Michael Arrington

Although the last official valuation of MySpace was just $530 million, while those of Facebook, Bebo and LinkedIn were $15 billion, $850 million and $1 billion respectively, Arrington offers up a new model of valuing social networks – one that puts MySpace right on top.

His model looks at total Internet advertising spend in countries rather than evaluating a social network on the basis of page views and unique visitors.

“I believe an effective way to value a particular user is based on the average Internet advertising spend per person in the country they live in. The higher the spend, the more value the social network can get out of the user by serving them advertising and other products. That means that, for now, users in a handful of key countries are worth far more in terms of revenue potential than those in the rest of the world.”

Read the full post here: http://www.techcrunch.com/2008/06/23/modeling-the-real-market-value-of-s...