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News Corp. reports earnings tomorrow — but no one's worrying about how many copies of The Simpsons Fox sold on Blu-ray. Wall Street's worries are centered on how ads are doing on MySpace. After months of denials, a Fox executive has conceded the obvious to the Wall Street Journal: Google's keyword-pegged ads are bombing on MySpace. Google CEO Eric Schmidt said as much in discussing his company's results, but MySpace founder Chris DeWolfe was quick to deny a problem at the time. With Fox Interactive's parent company, News Corp., reporting quarterly results tomorrow, we suspect the Fox source let the bad news leak early in an effort to mix a hint of optimism in the story. The result:Instead of a deeper look at why the Google-MySpace partnership is failing, the Journal produced an explainer on MySpace's nearly-year old "hyptertargeting" ad product — the one that, according to the Journal, enables MySpace to double the amount it charges advertisers by categorizing users "into more than 1,000 'buckets,' including rodeo watchers, scrapbook enthusiasts and Dancing With the Stars viewers." Concert organizer Live Nation and shoemaker Adidas bought some inventory and walked away pleased, the story tells us. One problem: like all behavioral targeting technology, "hypertargeting" faces increased scrutiny from Congressmen on a privacy kick. Another problem: targeted or no, many marketers don't believe MySpace users pay any attention to ads while they're cruising each other's profiles.