by Search Copywriter
D. Warburton
D. Warburton
Social networking giant Facebook has signed a new advertising deal with Microsoft to regain control of its display ads and integrate Bing more fully into the site's search engine.Smart Company reports that Microsoft will continue to sell text-based search ads on the social networking site, but the decision was made to replace Microsoft's banner ads with Facebook's own as these were felt to integrate better into the site's culture. Facebook's banner ads target users based on information in their personal profiles, and the company stated that this move will provide better value to its nearly 400 million users.
Facebook stated: "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.
"This combination of targeting and social relevance is the primary driver behind the shift in strategy."
The original advertising deal between the companies lasted until 2011, but has been halted early and will see Microsoft's banner ads being taken down over the next month. Microsoft will instead re-focus its efforts on powering Facebook's search function with its Bing search engine.
Facebook explained: "Bing will continue to exclusively power the web search results on Facebook. This change will also enable Microsoft to continue its focus on driving strong performing campaigns across our own social media and communications tools, including Windows Live Messenger and Hotmail, and via rich content environments across MSN and Xbox Live."
No financial details of this changed partnership have been revealed, but analysts believe that some financial element will be included, as the social networking giant has recently put more emphasis on its internal figures. Microsoft became a Facebook shareholder in 2007 after paying $240 million (approx £154 million) for a 1.6 per cent stake.
