News Corp, Google Deal Deconstructed

15 thoughts on “News Corp, Google Deal Deconstructed”

  1. I don’t know how it would be possible, but maybe Google can help transform MySpace into a site that is easier to travel through. MySpace may be one of the most popular sites, but it is also one of the crappiest sites with all the weird videos and images that people throw onto their pages. I wish the people who love their MySpace pages so much would learn that “less is more”. Google seems to know that … sometimes.

  2. How does Google plan to change the behavior of MySpace users and improve click-through and conversion in a non-intent based space (the contextual piece)?

    If successful, the partnership through Google in MySpace toolbar and on the site, will keep users on MySpace and cost Google 90% of the revenue they are earning now from users at MySpace that go right there…how big does Google have to grow the pie to make the net increase work?

  3. Wrong. The value is on MySpace, not FIM’s other sites. Myspace pages/users provide tons of info which can be used to target ads. Google is banking on their ability to target better than MySpace is able to do on their own.

  4. “How does Google plan to change the behavior of MySpace users and improve click-through and conversion in a non-intent based space (the contextual piece)?”

    Chances are that Google Smart Pricing will devalue the PPC ads to the point where the buy is still beneficial to the advertiser, MySpace & Google.

    For example, an ad for Razr Phones shows a 50% less conversion rate from MySpace users than the users of enGadget. The advertiser’s cost would then lower to the point where they are still experiencing a positive ROI.

    Less cost per click revenues for Google & MySpace, but still more eCPM than the current ads being shown.

    On the other hand, Google AdSense ads for individual fan targeted Ringtones may actually perform better on MySpace than say, GigaOM. Raising the all around spend on Google Contextual Network & AdWords, while bringing in more for MySpace & Google.

    Google is probably benefiting way more from this deal than only the advertising in terms of branding and the tracking of profile and user behavior information, which can then be used to serve more targeted ads to these users as they search and surf on non-MySpace destinations while Google can also use this behavioral information to further enhance their personalized search technology.

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