Google's highly-touted deals with MySpace.com and MTV Networks this week are pretty prolific for all parties involved. Google will further entrench its AdSense platform into two incredibly-popular web properties -- Viacom's MTV Networks and News Corp.'s MySpace.com -- at a time when both media companies needed a workable advertising solution to ensure monetary growth in both businesses. And, Google will reap the benefits of providing highly-relevant ads in front of hundreds of millions of potentially new eyeballs.
Was MySpace.com in trouble? It depends on your perspective. While the site has rocketed to almost the top spot in monthly web visitors, coming close to perennial leader Yahoo!, the way in which it brings money to the News Corp. corporate table was a pretty large unknown. Only one thing was known: MySpace.com was generating an unreal amount of visitors, ad candy to many large companies that probably wanted to purchase the property. In the end, Rupert Murdoch and News Corp. won the deal.
Now it's time to monetize that traffic without destroying the look, feel culture and uniqueness of the property -- a sure sign of driving away visitors that happens all too often when a large corporate takeover of a spirited, young and hip company happens. Google's deal with MySpace.com this week will provide that in customary Google fashion most likely (read: lucrative). Additionally, Google's deal with MTV Networks to syndicate clips from the network on Google's global AdSense network will also provide a nice boost to MTV as well as further entrench AdSense as the new ad medium for the next decade, if it's not there already.
Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.
Last updated: February 13, 2012: 09:15 AM
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Reader Comments (Page 1 of 1)
8-11-2006 @ 5:22PM
M. Sese - WireFan said...
Google Deal Leaves MySpace in a Bad Situation..In the world of business, mergers and acquisitions are the trends. There are big deals and then there are $900 million deals. Monday, the deal made by Google's with Viacom to syndicate MTV content over its AdSense network was really a big deal.
Googles partnership with News Corp. to offer search and display advertising to MySpace users for the next three years and nine months was blockbuster. JupiterKagan analyst David Card reported that it is a good deal.
Moreover, combining MySpace's big audience, fanatical, heavy users and Google's leading paid search network creates a perfectly good sense. News Corp. purchased Intermix Media and its MySpace property on 2005 and since then its popularity exploded.
However, there was a challenge. Though Internet advertising generated income of up to 30 percent in 2005, the MySpace product is unable to rise the tide.
This is because the sponsored search results and contextual ads contributed to the growth, which is not the type of banner advertising MySpace sells on its user profiles.
Forrester Research Analyst Brian Haven said that user-generated content is too unpredictable for brand managers. It was not a success for MySpace to be bubbling over with 100 million user profiles and growing market share in the social networking space.
With the business move, it resulted that sponsored search results and contextual ads are a crucial MySpace ingredient. There is already a lot of bad advertising inventory on MySpace.
By M. Sese
http://jump2top.com