News Corp.-owned social network firm MySpace has renewed an online advertising deal with Google, but reportedly at a much lower rate than the original contract.
The extended deal, announced yesterday, opens the door for MySpace to utilize Google’s Display Network and DoubleClick ad exchange, along with enhanced web search and online advertising.
MySpace chief revenue officer, Nada Stirratt, said the deal will provide users with a “robust search experience,” and help the firm “increase yield across our display ad inventory.”
However, Google has dropped guarantees of a minimum payment to MySpace, after generating less than the $900 million (€676 million) pledged over the three years of the original contract, FT.com reports.
MySpace chief Chase Carey conceded in August that the new deal would likely be based on the social network firm’s performance, Bloomberg noted.
The firm has lost out to rival Facebook in the three years since the original Google deal was signed.
Revenues are predicted to fall from $470 million to $347 million in 2010, FT.com reported citing eMarketer figures.