August 22, 2006 10:45 PM PDT
Microsoft lands Facebook ad deal
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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.
There are indications that the deal was an attempt by Microsoft to quickly rebound after watching Google walk away with the exclusive rights to provide advertising to MySpace's 100 million registered users earlier this month. Microsoft said in a statement that talks between it and Facebook started only last week.
Microsoft is trying to make up ground on Google in the area of search. When it comes to cutting exclusive deals with social-networking sites, one of the Web's fastest growing sectors, the first round goes to Google, which agreed to pay MySpace's parent company, News Corp., $900 million over more than three years as part of the arrangement. Microsoft did not disclose financial terms of its agreement with Facebook.
Microsoft will post banner advertising and sponsored links that should appear on Facebook in the fall the companies said.
"We're excited to be innovating with Microsoft to build a world-class advertising solution that allows Facebook to deliver the best advertising experience in social media," Owen Van Natta, chief operating officer of Facebook, said in a statement.
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with Microsoft, the company who cant get out of its own way
long enough to release a product that actually works better than
the last product they made that was supposed to be better than
the one before the one before the other one.
That Facebook and Microsoft were both desperate enough to
make a pact to use each other is just a big joke, and another
way for MSFT stockholders to get the shaft as Gates, Ballmer and
CO waste hundreds of millions trying to catch market innovators
like Google and Apple, rather than actaully coming up with new
and unique ideas of their own.
Having a lot of money to throw around does not a good
businessman make...sell MSFT stock and buy a Mac, and use
Google to find the best deal....remember if it doesnt say Google,
its not Genuine Search.
For Micosoft, this really is not much of gamble. I mean really, how much worse could it get for them regarding Vista? If they make the January 2007 timetable, most will say "It's about time". If they don't, most will say "I told you so". Amazon, on the other hand, is under increasingly more & more pressure from other retailers & service providers. Putting your eggs in the Microsoft basket is definitely a calculated risk.
The same can be said for Facebook. I'm sure Microsoft threw gobs of money at them to secure exclusive ad rights. But long term, what will it cost Facebook by going with a less mature & robust advertising network? Facebook needs to tread carefully regarding ads. The last thing they want to do is diminish their popularity, because of less than well thought out advertising. And we all know how well Microsoft thinks out some of their ideas.
As for Amazon, I hope this doesn't become one of their un-defining moments. I like Amazon, and am a semi-regular customer, especially around the holidays. Facebook? Well just let's just say I am DEFINATELY not in their age demographic. I am older, have more disposable income, and am more inclined to spend it. Hmmmmm....disposable income, willing to spend it, online advertising. Never mind.
And then there's Microsoft. The company that has afforded me a decent living. The maker of average functioning, over-priced software. There was a time I would have cared about them, one way or the other. But those days are gone. Have been for some time. And really, I can't imagine a time when they will again capture MY mind-share. That would be SO 20th century!
I?m Guessing
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