News Corp set to roll out social networking ad technology

Owners of social networks have struggled to turn the burgeoning popularity of the sites into substantial advertising revenue, but MySpace's new "hyper-targeting" technology is designed to address the shortcomings of the relatively new market and sell online ads efficiently.

The newly developed advertising technology will tailor online ads to internet surfers interests.

As part of the rollout of the technology, News Corp is restructuring its internet division.

Adam Bain, executive vice-president of production and technology at Fox Interactive Media, will be named president of Fox Interactive Media Audience Network, while Michael Barrett, chief revenue officer and a former Time Warner executive, will part company with the organisation.

Peter Levinsohn, chief executive of Fox Interactive Media, said in a memo to employees: "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,"

Separately, Fox Interactive Media confirmed the division could fall short of its fiscal 2008 revenue target of $1bn, as it reorganises its divisions to better exploit the online advertising market.

The confirmation comes hot on the heels of reports that the division would miss its annual revenue target of about $1bn and likely come in at around $900m.

Regarding its revenue targets, Fox Interactive Media said in a statement: "We expect to be close to our target."

Some have speculated that the timing of the rollout of the new technology could be partially to blame for the potential shortfall.