Google to Serve Ad's on MySpace

MySpaceGoogle has won a biding war for the right to serve adverts on MySpace. The deal is worth approximately $900 million, but given the revenue that Google can make from serving up AdSense it should more than make up for that.

One concern for Google could be that a large proportion of the MySpace user base are not old enough to have credit cards, which would limit potential advertisers. There is also anecdotal evidence that college students and older MySpace users, have migrated to FaceBook and other social networking sites, so not all advertisers may feel inclined to display adds on MySpace.

Given that the average MySpace site could charitably be described as “in need of some improvement” it will be interesting, as Google checks pages that want to serve AdSense adverts for quality and content. These checks by Google help determine which ad’s are placed where.

Other commentators think that the social aspects of MySpace will be used, for example possibly being able to see what your MySpace friends are searching for.

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