MySpace, owned by News Corp. (NYSE: NWS), is going to outline its online ad targeting efforts in details tomorrow at the Merrill Lynch Media & Entertainment Conference in LA tomorrow, and some details in this story from NYT tonight (presentation is being webcast here, and start at 11:15 AM PST). A 100-employee team inside the Fox Interactive Media offices in Beverly Hills, called the “monetization technology group,” has designed computer algorithms to scour MySpace pages, the story says, and have been testing it for the last six months. The algorithms make their judgments partly on certain keywords in the profile, and the targeting tech has improved the likelihood that members will click on an ad by 80 percent on average, it says.

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The program is currently in a pilot phase with 10 “enthusiast” segments with some select advertisers, and will be available broadly this fall other segments. Also, in November, MySpace will launch a self-serve online ad system to allow smaller companies to aim at MySpace users with their ads.

The effect on MySpace’s bottomline? Pali Capital made some estimates last month, saying this will help increase revenues from $40 million montly in August ’07 climbing to north of $80 million monthly over the next 12 months.