NEWS: Google year-end results disappoint

...
SOCIAL NETWORK WEAKNESS

Executives acknowledged Google has struggled to make inroads selling ads on social network sites -- now the Web's hottest market -- such as News Corp's MySpace.

Lindsay speculated Google is having trouble making money on its $900 million, three-year deal to sell advertising to MySpace customers.

Rising traffic acquisition costs may reflect the fact that Google pays MySpace whether or not it makes money selling ads on MySpace. "It's a toxic deal for Google," Lindsay said. "That is eating into margins."

...
(full)