Responding to the specific challenges of marketing at its social networking prize MySpace, News Corp (NYSE:NWS-A) is making over its Fox Interactive divisions to better take advantage of the online advertising space.
Part of that strategy is to launch its highly touted Web advertising network, "FIM Audience Network," which will hyper target Internet surfers according to their specific interests.
"I am confident that we are moving in the right direction to secure our long-term success, and I am certain that we have the right leadership team in place to take us there," FIM Head Peter Levinsohn said in a memo to employees.
Many have thought it would be impossible to monetize social networks, because of Google (Nasdaq:GOOG) inability to do it with YouTube. I think that's different though, and MySpace has much more professional content and controls in place than Google does with YouTube.
According to an unnamed company source, part of the reason for News Corp. possibly not reaching its goal of $1 billion in revenue for its FIM division is the timing of the implementation of the FIM Audience Network, although FIM did say in a statement that they'll be close to reaching their goal, "We expect to be close to our target."
Other changes in the Interactive division will be the departure of Chief Revenue Officer Michael Barrett, and Adam Bain will take over the duties of president of FIM Audience Network.
Levinsohn added there will be more decentralization in order to improve the accountability. "By integrating the sales teams in this way, each operating unit will be empowered to assume responsibility for its revenue, growth and profitability," said Levinsohn.
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