Ebay's announcement a couple of weeks ago that they would partner with Yahoo to include advertising in their site has kicked off a trend that MySpace has now picked up on.
For News Corp's COO, Peter Chernin, (News Corp owns MySpace) has just announced that MySpace will hold an auction with Google, MSN and Yahoo to decide which one of them will provide a turnkey service enabling MySpace to run search based advertising across the site.
MySpace (or perhaps News Corp) are dead keen on whacking up already fast growing revenues at an even headier rate and are prepared to redesign MySpace pages to optimise search based ad exposure. That's good for revenues - they had better make sure that its also good for the customer experience.
And MySpace now have one big customer base to manage as their latest monthly numbers show that they have more visitors than AOL or MSN! - and at 50 million are just behind Yahoo.
Most interesting of all is watching a major corporate such as News Corp managing a hot, once independent property (MySpace - der!) so far successfully. They will need to ensure that they do not over egg the commercial side too early and alienate their young, hip audience.
If they do get it right, News Corp might just be sitting on the worlds first Internet portal capable of unseating Yahoo for number 1 slot!! Nice deal Murdoch.
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