Summary
This article explores some of the implications from Myspace partnering with Google.
Analysis
This deal accomplishes a few things in the online space. It crushes any chance for MSN Yahoo and ASK.com to gain any traction on Google, and it helps boost advertisers spends who are looking to gain the eyeballs of teens.
Google needs partners of this size to offset any slowdown in the paid search market. At one point paid search on Google will plateau and partnerships like myspace will help drive up adsense revenue. Eventually Google will start to earn major revenue from adsense, when they start to monetize this area better. Currently, Advertisers on Google can set bids for search on an individual keyword basis. For content targeting you can set 1 bid for all your keywords. In the past when an advertiser opted in for content targeting, they were forced to bid the same price for content as search. When the feedback came rolling in to Google letting them know that content bids weren’t as targeted for search, they were forced to separate the two bid categories. Currently you cannot bid for keywords on an individual basis on content targeting, which doesn’t help Google’s cause to turn on advertisers to content targeting, but I’m sure in good time that will change.
MSN and Yahoo are eating their dust after this major deal.
