Google Deal Bails Out MySpace

Discussion in 'Google' started by Claymation, Aug 11, 2006.

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  1. #1
    Google's deal with News Corp. to provide search and display advertising to MySpace users for the next three years and nine months was blockbuster.

    It solves what were becoming serious monetization problems for MySpace and ships a truckload of feather pillows to Google to pad its AdSense revenue, a crucial part of its overall profits.
    http://www.internetnews.com/xSP/article.php/3625786
     
    Claymation, Aug 11, 2006 IP
  2. 1EightT

    1EightT Guest

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    #2
    social networking sites still have no solid buisness plans. Luckily the one i've been building over the past year does :)
     
    1EightT, Aug 11, 2006 IP
  3. lesliedocherty

    lesliedocherty Guest

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    #3
    Hey,

    A lot of people are bailing out of myspace, to much spam and crap going on,
     
    lesliedocherty, Aug 12, 2006 IP
  4. Ganceann

    Ganceann Peon

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    #4
    The big brands were never really in on MySpace and likely will not follow Google into it. Flickr withdrew contextual advertising after complaints on the type of ad appearing ... I expect there could well be complaints from October by MySpace users as well... but I doubt Google would take the contextual adverts out.

    There are also many spammers who have used MySpace as an advertising vehicle and I dont see them suddenly stop creating multiple profiles to use auto-posters and artifically boost visits etc
     
    Ganceann, Aug 12, 2006 IP
  5. mdvaldosta

    mdvaldosta Peon

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    #5
    I think many advertisors are gonna see reduced conversions, everybody knows MySpace traffic doesn't buy anything. This will hurt Google in the end, unless they devalue or (of course) smartprice MySpace clicks.
     
    mdvaldosta, Aug 12, 2006 IP
  6. Burta

    Burta Well-Known Member

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    #6
    I personally wouldn't want my ads on a MySpace site... I think that this is the very desperate move by Google - this is on Big Fish I don't Google wants to catch.
     
    Burta, Aug 12, 2006 IP
  7. shamess

    shamess Well-Known Member

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    #7
    Social networking deals are all confusing.

    MySpace... deals with... Google... deals with... MTV (Viacom)... deals with... Bebo - THEIR BIGGEST COMPETITOR oO;

    Think it through people. Google makes millions what ever happens xP

    </random>
     
    shamess, Aug 12, 2006 IP
  8. sholiz

    sholiz Active Member

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    #8
    What if they're all owned by the same company? Covering it up with a conspiracy that Rupert Murdoch isn't a real person, rather a extraterrestrial lifeform in a cognitive universe that dosen't value money in the sense of profits, rather figures it's profits into the amount of the marketshare it owns.

    *start XFiles music*

    </offtopic>
     
    sholiz, Aug 12, 2006 IP
    shamess likes this.
  9. Ganceann

    Ganceann Peon

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    #9
    Any corporation is interested in MySpace simply for the traffic levels it gets and continues to get. The decisions are how best to profit from such vast numbers of users - and that inevitably means advertising (or charging for the service...)

    Charging would help reduce the spam to some degree but would also lose many of its daily users. It is weighing up all the factors - and $900mil for 3 yrs 9 months shows Google expect to transfer the MySpace users to Google main search and hence they are buying traffic and establishing their brand more.

    It will be interesting in October to see what happens.
     
    Ganceann, Aug 12, 2006 IP
  10. chachacallis

    chachacallis Well-Known Member

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    #10
    google paid a hefty price just to ad seach the search funtionality.
     
    chachacallis, Aug 12, 2006 IP
  11. BlueDevilMedia

    BlueDevilMedia Well-Known Member

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    #11
    This will surely inflate advertisers' cost due to invalid clicks. The conversion rate is going to be embarrasingly low!
     
    BlueDevilMedia, Aug 12, 2006 IP
  12. sholiz

    sholiz Active Member

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    #12
    Yeah it will, but for the traffic Myspace gets even a .01% conversion rate will yield incredible profits.
     
    sholiz, Aug 12, 2006 IP
  13. ReadyToGo

    ReadyToGo Peon

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    #13
    You can really get the feel of how massive the business is...
     
    ReadyToGo, Aug 12, 2006 IP
  14. danimal

    danimal Active Member

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    #14
    google didn't "bail out" myspace at all... msn, yahoo, and google were competing heavily for the myspace traffic, and in fact yahoo had been the search engine of choice before google got the contract.

    just about any kind of traffic has value.
     
    danimal, Aug 12, 2006 IP
  15. 1EightT

    1EightT Guest

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    #15
    seriously, myspace didn't need to be "bailed" out. It was never i a position to go under or not make revenue.
     
    1EightT, Aug 12, 2006 IP
  16. PreZ

    PreZ Peon

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    #16
    Now myspace needs to let us put our adsense on our personal pages :)
     
    PreZ, Aug 12, 2006 IP
  17. easterwolf

    easterwolf Well-Known Member

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    #17
    As far as I know, MySpace has taken a tremendous kick in the soft spot up till now and sitting out of 500-something-million bucks...

    What would YOU do if you wanted to make a return on a 500 million $ investment? turn down the Google deal? or wait and hope to sell it or get a better, more ideal type of offer?

    As an Adwords user, I personally don't care what site I am getting my clicks/ customers from as I have a pretty solid sale % per hits. If it's contextual, it doesn't really matter. It's not like it's unrelated CMP ads or random-off-topic-banners that people are just clicking on because they are bored and are not really interested in the product. As long as I have a good product at a competetive price, the user will likely bookmark my site and come back to buy if they don't right away.
     
    easterwolf, Aug 12, 2006 IP
  18. iconrate

    iconrate Well-Known Member

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    #18
    I think a few people here are not taking into fact the differing definitions of 'myspace traffic'. Forums such as this one coined this phrase due mostly to the age and "suckerability" of your stereotypical myspace user and their willingness to click on ads that are hidden within the site.
    Look at all of the made for myspace sites for sale on this site and you'll quickly realize these sites make their money by tricking the user. Every one of these sites are like this. Having said that myspace will either have a search input or possibly ads on the top of profiles such as they have now. These clicks will not be 'myspace traffic' these will be real visitors looking for on topic content/products. This seems like a great deal for both myspace and google.
     
    iconrate, Aug 12, 2006 IP
  19. seo-mumbai

    seo-mumbai Well-Known Member

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    #19
    This days lot of spammers in myspace , many guys looking for adult images that few female members like to show themself.lot of auto scripts asking to accept as friend and later making money for sending bulliten newsletters.
     
    seo-mumbai, Aug 13, 2006 IP
  20. ericeric

    ericeric Guest

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    #20
    money is power...
     
    ericeric, Aug 14, 2006 IP
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