Google hits Web 2.0 trifecta: AdSense powering MySpace, YouTube, Digg

Google gains 100 million friends in ad deal with MySpace.
Written by Donna Bogatin, Contributor

Google is to be the exclusive provider of text-based advertising and keyword targeted ads through its AdSense program, for inventory on Fox Interactive Media's network , beginning in the fourth quarter 2006, the company announced today:

News Corporation's Fox Interactive Media and Google Inc today announced a multi-year search technology and services agreement whereby Google will be the exclusive search and keyword targeted advertising sales provider for Fox Interactive Media's growing network of web properties including MySpace.com.

The agreement calls for Google to power web, vertical and site specific search for MySpace.com and the majority of Fox Interactive Media properties.


Financial terms:

Google will be obligated to make guaranteed minimum revenue share payments to Fox Interactive Media of $900 million based on Fox achieving certain traffic and other commitments. These guaranteed minimum revenue share payments are expected to be made over the period beginning in the first quarter of 2007 and ending in the second quarter of 2010.

MySpace has apparently been factoring in the projected Google payments in its future revenue projections; News Corp. recently forecast MySpace 2007 revenues at $500 million (see “YouTube, Digg, MySpace: How much is a non-paying 'user' worth?”).

The quality and “salability” of MySpace’s inventory, however, was questioned today by analysts during the joint Fox Interactive Media and Google Management Conference Call.

Fox Interactive continues to retain, in fact, exclusive rights to directly sell its most desirable, and most lucrative, display advertising to Fortune 500 advertisers.

The agreement calls for Google to have an option on My Space’s unsold, “remnant” display advertising: “Google will also have a right of first refusal on display advertising sold through third parties on Fox Interactive Media's network.”

ALSO SEE: Google AdSense: Web 2.0 biggest winner?

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