The LA Times is reporting that MySpace ads are about to get much more targeted. Soon, small businesses and individuals will be able to use templates to create banners ads. They will then be able to specify the characteristics of users they want to reach. User’s profiles will be mined for data that indicates their individual tastes and habits.

“We’re looking at everything people put into their profiles and what their friends are into,” said Arnie Gullov-Singh, a Fox Interactive vice president.

The announcement comes a day ahead of the planned introduction of a new advertising system by MySpace’s chief rival, Facebook Inc. MySpace is larger by most measures, but Facebook is growing faster and lately has attracted more attention from technology companies.

Facebook’s plan also is expected to use information from user profiles and may target ads to those users even as they view pages elsewhere on the Web.

MySpace’s so-called hyper-targeting takes into account the obvious — such as hobbies and interests posted by MySpace’s 110 million registered users — but also more subtle clues, such as the pictures they use in the background of their pages and what they blog about.

MySpace will let users aim advertising at site members [LATimes]

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