Most of the users of the site are in their teens and early 20s, making it a very attractive market for advertisers. The nature of the site as a social networking hub make it so that the users make it so that marketers have access to vast amounts of data about the people who visit it. Early on in the site's development, a decision was made to ensure that all of its features remain free to use. That has turned out to be a very profitable choice, as the rapid growth in the user base of the site as provided substantial revenue for the site.
One of the reasons that Myspace has stood out from some of its competition is the ability for users to customize the HTML markup of their profile pages, making it far more customizable than that of their major competitor, Facebook. This also has the negative side-effect of subjecting many hundreds of thousands of people to some of the worst web design imaginable. The site also offers free blogs to all users along with some in-depth profiles that they can fill out to their heart's content.
The parent company of Myspace was purchased by Newscorp in 2005 for an impressive $580 million, which helped to establish the increasing strength of web media. In 2006, Google signed an eye-popping $900 advertising and search exclusivity deal with the website.
One interesting aspect of Myspace's development is the role that it has come to play for the music industry. Just about every band worth its salt uses Myspace to provide free samples of their music and post news along with concert dates to promote themselves. It's become indispensable for established artists and new ones alike.