Google to keep powering MySpace ads, search

MySpace on Thursday announced that Google will continue to power advertising and search at the flagging online social network under pressure to improve its financial performance.

MySpace and Google inked a multi-year agreement to renew and expand their relationship to include display advertising.

"We're excited to deepen our partnership with one of the largest social Web properties in the world, MySpace," said Google vice president of global media and platforms Henrique de Castro.

"We're pleased that our technology will benefit MySpace's users on its newly redesigned site, and that MySpace has chosen our display advertising solution to increase its returns."

News Corp. put MySpace on notice last month, saying the losses at the ailing social network were unsustainable and there needs to be improvement in the next few quarters.

"We've been clear that MySpace is a problem," News Corp. president and chief operating officer Chase Carey said during a conference call with analysts after the media and entertainment giant released its quarterly earnings.

"The current losses are not acceptable or sustainable," Carey said. "Our current management did not create these losses but they know we have to address them."

Rupert Murdoch's News Corp. bought MySpace for 580 million dollars in 2005 but it has been eclipsed by Facebook in recent years, which has grown to more than 500 million members while MySpace's numbers have dwindled.

"We're thrilled about renewing our partnership with Google," said MySpace chief revenue officer Nada Stirratt.

"We look forward to participating in the Google Display Network and DoubleClick Ad Exchange to increase yield across our display ad inventory."

(c) 2010 AFP