Money From Google Crimping MySpace's Style

from the caught-in-the-crossfire dept

Last summer, News Corp. seemed to vindicate its purchase of MySpace when it signed a $900 million advertising pact with Google. Now News Corp. may be wondering whether it got more than it bargained for when it signed that deal. The Wall Street Journal is reporting that finalizing the paperwork has hit a snag as News Corp. is concerned that the terms of the deal may prevent it from exploring other partnerships. In particular, the company is said to be in talks with eBay to bring "peer commerce" to its social network. It's not clear whether it makes sense to bring eBay-style auctions to the social networking site, but either way, Google isn't thrilled about letting its rival have this opportunity; its $900 million payment was in part a defensive measure to prevent other companies from getting at MySpace's base. Meanwhile, MySpace, which had hoped to play the role of kingmaker by awarding its traffic to the highest bidder, may be feeling a bit like a pawn stuck in the middle of a larger battle.
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  1. identicon
    Witty Nickname, 7 Feb 2007 @ 1:13pm

    MySpace Ads

    I have a myspace account, and I use it occationally. I find their advertising scheme interesting. For example, myspace knows from my profile that I am a married male between 25-30. The biggest ads they show me are for an online dating site. At first I thought it was just a sad commentary on society until I saw one of the ads saying they do background checks to 'filter out marrieds'.

    Seems to me myspace could make a lot more money showing even slightly targeted ads, instead of showing the exact same thing to (I assume) everyone.

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