Wednesday, March 14, 2007

Myspace now powered by google

The two social networking giants have now finally got together.

Fox Interactive Media have just announced that Google will power the search on MySpace and other FIM properties. What’s more, Google will be the exclusive provider of text-based advertising (Adsense) and keyword targeted ads on FIM. Predictably, that also means Google will have the first right of refusal on ads displayed across the network, perhaps preventing the edgier ads from getting through (those who have used MySpace will know that the ads are almost as edgy as the content).

The deal will take effect in the fourth quarter of 2006 and currently extends to the second quarter of 2010 - that’s one heck of a long time in the social media space, and it’s hard to say whether MySpace will still be around by then. As part of the agreement, Google will need to pay a minimum of $900 million in ad revenue share, so long as Fox achieves its expected traffic levels and other commitments.

Based on previous coverage (when MySpace was shopping for a search partner), it’s safe to say that the Google search box will replace the MySpace Search in the header - that means Google will appear on almost every MySpace page. Eric Schmidt, CEO of Google, is quoted as saying the deal “furthers our mission of making the world’s information universally accessible and useful”, which seems like a long shot.

This means that google now controls myspace atleast it's search.


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