MySpace UK Taking Ad Sales In-House

Is MySpace a strong enough brand in the UK to go it alone in ad sales? The News Corp.-owned social networking site will soon find out: it has severed its ties with several third-party ad networks in the country and is instead moving all of its ad sales to Fox Interactive Media (NYSE: NWS). Ad houses affected by the move include Microsoft (NSDQ: MSFT) Advertising, Adconian, Advertising.com, Adjug and Associated Northcliffe Digital.

A spokesperson for MySpace in the UK says that this move is UK-only and separate from a bigger reorganisation underway for the social network, which shed around 65 percent of its workforce last year. Last July, MySpace announced that it would be outsourcing the sites in Brazil, Argentina, Spain, Italy, Poland, Mexico and Turkey to sister company Fox International Channels. FIC now runs advertising, marketing and promotional activities for those sites.

The move will be a trade-off of sorts. On the one hand, the News Corp. division will be able to retain a bigger share of revenues for ads, and have a more direct relationship with the advertisers: