Fox Interactive has begun testing targeted ad delivery on MySpace, reports Business 2.0.

Testing ad targeting technology has been underway for about two weeks. Based on tweaks made to the algorithm, the system could roll out sometime in the next couple of weeks.

Ads are delivered based on defined user preferences, along with behavior data that adjusts what someone says they like and what they seem to respond to most.

This form of ad targeting could raise the CPM rate currently charged by MySpace, which is low compared to other sites. This is because user behavior has been hard to pin down in a way that is of value to advertisers.

In an interview at ad:tech Miami last June, MySpace CMO Shawn Gold revealed that the company is looking into conducting and releasing formal psychographics of the user base in the near future.