RSSGoogle Buys MySpace Ads for $900m
By Ed Oswald | Published August 8, 2006, 11:49 AM
Google will pay at least $900 million in shared revenue to become the exclusive search provider for popular online site MySpace.com and other Fox Web sites. The deal is a big positive for News Corp, as it now has nearly recouped the $1.2 billion spent last year to acquire both the social networking site and gaming site IGN.
The agreement covers most of News Corp's Web properties. Also included is popular movie review site Rottentomatoes.com, Gamespy.com, fox.com, americanidol.com, and others. It does not include the Fox Sports Web sites, as Fox already has a deal with Google competitor MSN.
In addition to the search deal, Google will also become the exclusive text-based ad provider on Fox Web sites. The search giant will additionally have first rights to sell display ads that are sold through third-parties. Integration of Google functionality is expected to begin in the fourth quarter of this year.
"This is an exciting time in our history as a forward thinking media company and this is just the first of many steps we plan to take with Google," News Corp chief operating officer and president Peter Chernin said in a statement. "We look forward to expanding our relationship into many new areas over years to come."
Under the terms of the deal, payments would be made over a period beginning in the first quarter of 2007 and ending in the second quarter of 2010. The payments will be based on the Fox properties achieving a set goal for traffic and fulfilling other commitments.
With the search functionality, MySpace users would be able to perform Web searches without leaving the site. This will result in users staying on the site longer, executives say.
"This looks like a win-win for both companies," JupiterResearch analyst David Card said. "This has got to hurt at Yahoo and Microsoft. Especially Microsoft, who still hasn't established its marketplace."
MySpace - ugly, slow and unstable site
http://medvegonok.blogspot.com
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|Ad-blocking apps ... against the terms of service of the web site? How would they even know you are blocking ads if they are on the client-side.
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|In theory, they could by performing traffic analysis and matching IPs, but most (if not all) don't.
I didn't say anyone could catch you, just that it violates their ToS in most cases.
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|*EDIT*
The title of the article is extremely misleading. There's no mention at all of Google providing Myspace ads. Boo.
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|I guess there are a lot of people out there who dont use tools such as the HOSTS file, AdMuncher, Privoxy, etc. to make such deals worthwhile.
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|I would never use a hosts file to block sites. Doing do delays network performance in general.
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|you are absolutely right. If everyone use FF and adblock (or any other art blocking software), Google or any companies depending on web ads will go bankrupty in no time.
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|I'm glad someone said it before I did. I hear about people giving so much hype to these 4, 5, and 6MB hosts files, and I just shake my head.
The smaller the hosts file, the better. There are better options to block Web content.
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|Which is why using ad-blocking solutions usually violates a website's Terms of Service, if they have them, that is.
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|While I dont disagree, it is a form of free advertisement removal, without the need for another running piece of software on the machine.
I have admuncher running 100% of the time. Though not a big resource hog, it is still another program running in the background.
5,6MB is a little exaggerated dont you think?
If you obtain the updates for the 4 main routinely updated HOSTS files on the net through the program HOSTSman, which merges them all and deletes dupes, the file will still only be under 3MB...and that merged file comes with a boatload of false positives, including a few well known software sites including Softpedia.
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|5,6MB is a little exaggerated dont you think?
No, I'm actually serious. I've seen people on forums brag that their hosts file is that large, citing the "6MB" directly.
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|I kinda like to think of this as Google helping Myspace figure out how to make profit. But we all know what it's about...
DOMINATION!@!!
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|sigh...
its like watching a toddler take its first little baby steps.
how adorable, little baby gooogle. keep walking in that direction, yes we will, yes we will!! who's my little guy!!
(excuse the heavy sarcasm. great financial deal though - those swiss-alped early google stockholders must sure love their jobs....)
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