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Google and Myspace renew advertising contract

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MUMBAI: Myspace‘s dropping traffic and decreasing popularity as compared to Facebook hasn‘t deterred Google from extending its long-running advertising contract with the site.

The financial terms or duration of the contract between Google and Myspace‘s parent company News Corp. is not disclosed. However, the contract reportedly has been renewed for several years. News Corporation chief operating officer Chase Carey mentioned that the new agreement is performance-based.

The social networking site reported a loss of $100 million in 2009 as it failed to reach traffic commitments in accordance to the 2006 deal. As per the agreement, Google will now handle display marketing on the social media site, an area that Google is increasingly getting more interested in. Also, for the first time advertisers will be able to buy display ads that will appear on MySpace through Google.

The deal also enables Google to offer search advertising, web search and full display-ad solutions. As MySpace continues to struggle with its balance sheet, the extended deal will no doubt go a long way in addressing the social media site‘s problems.

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