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Search/Ad Landgrab:MSFT gets Facebook

By - August 23, 2006

From Cnet:

Microsoft failed to sign MySpace to an advertising deal, so the software giant went out and landed Facebook, the second-largest social networking site.

Late Tuesday evening, Microsoft announced that Facebook had agreed to allow the software company to provide search and advertising listings to Facebook’s 9 million users. The Wall Street Journal reported that the arrangement was for three years.

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  • MikeM

    Andy Beal posted earlier this morning that LookSmart ‘looked’ like thay had this one in the bag.

  • http://joeduck.wordpress.com Joe Hunkins

    Nice play by MS to capture the future. Even *current* Myspacers, most of whom are teens, envy Facebook accounts which are more restrictive and targeted. I’d guess Facebook eyeballs will be worth 2+ times Myspace Eyeballs in terms of advertising value.

    Why is everybody writing off MS and bearish on Yahoo? Once they stop being idiotic they’ll realize they have the same sized audience as Google and will monetize that viewership. With Vista’s launch, MS will control viewers in ways only their lawyers know for sure.

  • Soren Gordamer

    Not sure of all the details, but I think this is great for MSFT. Facebook users I think will likely use search more (and click on more ads). Myspacers are an interesting lot; I’m not sure how much they see ads or search. Their world primarily exists on Myspace. My guess is that Facebook may have more broad online users.

  • http://www.webmetricsguru.com Webmetricsguru

    I think Microsoft’s acquisition of Facebook plays into the a type of precision targeted marketing typified by AdCenter.

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