There's no lack of reaction to Google's three-year, $900-million deal to provide search and keyword advertising on News Corp. Web sites such as MySpace.com but maybe one of the biggest eye-openers is how MySpace's growth is starting to translate into business momentum. According to TechCrunch, MySpace has annual sales of about $350-million, which makes its $580-million acquisition by News Corp. last year look more like a bargain every day. For advertisers such as Google, the big challenge doing business with MySpace is determining how to effectively go after an audience that's not only young but fickle, not terribly loyal and prone to indulge in mini-fads. Google is clearly confident it can crack this marketing nut, and you have to think MySpace's advertising folks will likely have a much easier time closing deals these days. For the deal's details, check out Google's press release. For other thoughts, Jeff Clavier has a post as does Clickety Clack.
Addendum: Given the success of MySpace, among the rumoured buyers for YouTube (it will never do an IPO) is News Corp. GigaOm, however, offerss its take on why it won't happen.
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Wow, MySpace is The Real Deal
by
Mark Evans
on Tue 08 Aug 2006 07:32 AM EDT | Permanent Link
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