Google, MySpace Add Display Ads to Search, Ad Tie

Google and MySpace renewed their search and advertising deal Dec. 16, adding some display advertising to the mix. The deal is believed to exclude minimum payments.

Google and MySpace renewed their search and advertising deal Dec. 16, likely at a reduced cost to the $900 million the search engine paid to place ads on the fallen social network four years ago.

In the new multiyear agreement, Google will continue to power MySpace Web search and text-based search ads, along with some relevant display ads from Google's Display Network and DoubleClick Ad Exchange.

"We look forward to participating in the Google Display Network and DoubleClick Ad Exchange to increase yield across our display ad inventory," said MySpace Chief Revenue Officer Nada Stirratt.

Financial terms were not disclosed.

However, the new deal is different beyond the addition of display advertising, which should help Google as it seeks to challenge market leader Facebook in that coveted area of the market.

Unlike the three-year deal struck in 2006 when MySpace was flying high, this pact has no guaranteed minimum revenue payments, according to the Wall Street Journal.

If true, the reasons are myriad. MySpace's fortunes have waned as many of its users flocked to Facebook, which has amassed more than 550 million users. MySpace had 110 million users as late as 2008, but received 54 million visitors in November.

Much like at fellow Internet company Yahoo, MySpace has seen a revolving door of leadership and product personnel.

MySpace revamped its Website with a focus on entertainment in October, beckoning users to share videos and music and to play games, but this is unlikely to change the company's fortunes.