Microsoft banner ads banished from Facebook

 

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By Stuart Turton

Posted on 8 Feb 2010 at 08:10

Microsoft will no longer be responsible for display ads on Facebook, after the two companies overhauled their 2007 search deal.

Facebook claimed that its own display adverts - which can target viewers based on personal information - are better suited to the site than Microsoft's alternative.

"Ad formats that feature social actions perform better and provide a better user experience since they are more consistent with the look and feel of Facebook," the company claims. "This combination of targeting and social relevance is the primary driver behind the shift in strategy."

Given the kinds of advertisements that make sense within a product as unique as Facebook, it just made more sense for them to take the lead

While Microsoft may have lost its privileged position in display ads, the company will continue to sell text-based search ads on the website. The companies have also announced that they will expand their search partnership worldwide - the previous deal limited their activities to the US.

"Given the kinds of advertisements that make sense within a product as unique as Facebook, it just made more sense for them to take the lead on this part of their advertising strategy," says Microsoft Bing general manager Jon Tinter.

"Our two companies will soon provide Facebook users with a more complete search experience by providing full access to great Bing features beyond a set of links, including richer answers combined with tools that help customers make faster, smarter decisions," the post concludes.

The changes will take place over the next 30 days. Microsoft acquired a 1.6% stake in Facebook for $240 million in 2007, valuing the social network at $15 billion.

In return it began stuffing the site with display ads, a deal which was intended to run until 2011. The companies would not reveal whether Facebook will pay Microsoft a fee for altering the deal early.