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Monday, March 12, 2007

Google Steals Friendster Ad Deal – Yahoo! Left Looking for New Friends

Posted by @ 4:39 am
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Google has yet again stolen a lucrative advertising deal from Yahoo! with its new social network friend – Friendster. With MySpace and Facebook already in the bag, and YouTube now under the Google umbrella, it looks like Google has the social web all wrapped up.

Friendster, a social network pioneer, has chosen to replace its current Yahoo! search and advertising deal with Google in an effort to drive up site revenue. The social network is still to yet to make a profit, but hopes the new deal will bring a change of fortune.

Although one of the first social networks, Friendster has its back to the wall, having now been relegated to the lower traffic echelons – currently holding 35th position behind the likes of MySpace and Facebook (1st and 8th respectively) in the US market.

While conquering the US market is looking highly unlikely, it’s Friendster’s grip on the South East Asian market that could prove its saviour and a highly attractive proposition for Google. Friendster holds the top spot in countries such as Malaysia, The Philippines and Indonesia – which is a great opportunity for Google to tap into the rapidly growing region.

So keep your eye out for Google display advertising on Friendster members’ profiles in the short term, with search to be introduced in the next quarter.



Rene LeMerle Rene is the marketing manager of ineedhits.com - a global search engine marketing company. He also leads the marketing for Gooruze.com - a web 2.0 style community for online and digital marketers. Rene has been in the industry since 1997 with much of that time spent helping businesses embrace the best of the internet and digital world.

View Rene LeMerle's profile






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