Google partnering with MySpace and News Corp
Google Inc. has been chosen by News Corp’s MySpace.com and other web properties to provide search listings and advertising in a four-year deal that will worth at least $900 million in payments. [Reuters]
This is the largest single online advertising contract ever, with MySpace itself having nearly 100 million users and billions of visits.
Depends on topics of interest, some Adwords advertisers will benefit from the large amount of ads served at MySpace.
The average bids in various keywords could reduce significantly unless there’s a surge in advertising amount that match the huge market of MySpace traffic.
As for Adsense publishers, the average click value might drop especially for topics related in social networking, fun, gossips and entertainment.
Lower click value will directly contribute to lower income for Adsense publishers.
There are some positive possibilities for publishers though, with a larger market, Adsense could attract more large corporate advertisers to boost the ads pool.
It could also help the introduction of Google video ads as the young MySpace market would attract numbers of clients into advertising with videos.