MySpace and Google Inc. have renewed and expanded their search and advertising relationship under a long-term deal that no longer assures the social network lucrative guaranteed payments, according to a person familiar with the matter.
Google will continue to provide search and the advertising related to it on MySpace, as it has since 2006, and will begin also offering display advertising services.
MySpace will join the Google Display Network, a group of more than 1 million websites that allocate a part of their ad space for Google to sell advertising and share revenue. The social media site also will become part of Google's DoubleClick Ad Exchange, in which online publishers sell display advertising in an auction.
"We're thrilled about renewing our partnership with Google," Nada Stirratt, MySpace's chief revenue officer, said in a statement.
Preserving the relationship with Google is key to News Corp.'s attempts to revive struggling MySpace, because advertisers have been spending less on the site. Research firm EMarketer estimates ad spending on MySpace for this year will fall to $347 million, down from $470 million a year ago. Advertising revenue for MySpace is projected by EMarketer to drop again in 2011, even as the overall search advertising market expands.