Google to Power Search, Display Ads on MySpace

Google is back in business with MySpace—though, presumably, under better terms.

The two companies are once again working together—and this time Google is powering both search and display ads on MySpace. Though diminished, MySpace’s reach and traffic volume should provide a boost to both the Google Display Network and DoubleClick Ad Exchange, while providing MySpace with better yield.

Back in 2006, Google signed a deal to power search and contextual ads for MySpace—which at the time was the red-hot player in the nascent social media market—for $900 million through late 2010. But soon afterward, MySpace began having trouble delivering on its traffic guarantees, which led to revenue shortfalls for the News Corp. property.

Analysts criticized the deal, questioning whether search ads would ever perform well in social media environments or whether Google’s ad technology was even effective on MySpace.