Google pays $900 million to advertise on MySpace

By Justin Mann on August 8, 2006, 10:51 AM
$900 million of MySpace is going to go a long way for Google, who has recently joined up with MySpace to implement search and advertising. Google has won a bid that many search companies were competing on to provide the features for MySpace, who can boast almost 100 million users. But even such, are those 100 million users going to bring back $900 million in revenue spent? It's a risk, but then again Google is being bold in many different areas. Now, the pressure is on MySpace to be able to keep traffic flowing. Part of the deal requires that a certain level of traffic be maintained, and it will last for almost four years. Given the nature of Internet fame, there's no telling whether or not that MySpace will make it that long. Advertising is a powerful business, though, and when you can advertise on the top-visited site in the world you are doing pretty good.

User Comments: 2

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9Nails said:
What exactly does Google have to offer the MySpace community in terms of revenue generating goods? Sure MySpace has 100 Mil usernames. But most are under 12, and have no purchasing power.Google's consumer targeted goods that I'm aware of are free to use. I've seen some their corporate goods, but "MySpace" isn't a business community that would pay for these items. If Google wants someone to purchase their goods, they would be better off buying ad space at Just a thought.
tommy2step said:
Well actually many auto and truck part distributers have found quite a good niche market on myspace. They are also major advertisers with google. Comapany's such as that sell car covers, exhuast systems, clutches and air intakes help bring in that revenue.
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