As Rafat noted earlier this week, the WSJ expressed some excitement over Facebook’s plans to place targeted ads inside users’ profile pages. Today, there is similar breathlessness from Pali Capital concerning MySpace’s (NYSE: NWS) marketing deal with Coca-Cola. In a research paper, Pali hails August 17, 2007 “as a monumental day for social networking and Myspace in particular,” as Coke paid $1 million to have its logo splashed across the entire home page of the Fox Interactive Media social net for the entire day.

MySpace has begun to leverage the data input by each MySpace user into their profile from a group of predefined menu choices (related to questions such as drinker, children, education, smoker, religion, college, employer, etc…). Within the next year, MySpace will be able to target ads based on what users write and place on their Myspace page itself, such as what TV shows members like to watch or music they listen to. Aside from focusing on members’ login pages, the ad targeting will be used across all of the MySpace programmed, “safe” advertising sections, such as the Music homepage and MySpaceTV. The company will avoid MySpace users’ personal pages, leaving those areas to be sold via ad networks. Therefore, Pali concludes, the most valuable advertising real estate across MySpace should become targeted over the course of the next six- to 12 months.

From the note: “Benefiting from continued growth in domestic unique users (now up to 70 mm vs. 54 mm in July ’06 and 21 mm in July ’05), and international unique users (now above 40 mm vs. 25 mm in July ’06 and 7 mm in July ’05), with user engagement continuing to climb (simply more and more to do on Myspace) and the first-full year benefits of the Google search deal, advertising revenues are expected to be around $40 million in August ’07 climbing to north of $80 million monthly over the next 12 months.”

• Going Orgasmic Over Facebook’s Targeted Ad Plans