Rumor has it that Facebook and Microsoft are taking a step back from their previous closeness.
In October, 2007, Microsoft announced they were partnering with Facbook to launch an ad platform for the social networking site:
Facebook and Microsoft Corp. today announced that Microsoft will take a $240 million equity stake in Facebook’s next round of financing at a $15 billion valuation, and the companies will expand their existing advertising partnership. Under the expanded strategic alliance, Microsoft will be the exclusive third-party advertising platform partner for Facebook, and will begin to sell advertising for Facebook internationally in addition to the United States.
According to Inside Facebook:
Now, Facebook is running its own performance ad inventory in certain countries outside of the US, as we’ve heard and as the company has confirmed to us. These self-serve ads let most any advertiser provide their own ad copy and target ads to a wide range of very specific demographics. The format also includes call-to-action items such as the ability for a user to like an ad and see who among their friends have already liked it. Advertisers pay for these ads either based on the number of impressions (CPM) or by the number of clicks (CPC) that the ad is projected to receive.
Business Weeks reports:
Palo Alto, California-based Facebook is interested in handling more of that work itself, said Keith Lorizio, a Microsoft vice president who works for Domeniconi.
“We are in discussions with them on adjusting it or changing it as we go forward,” Lorizio said of the companies’ agreement. “They have a desire to sell their own advertising.”
…and on Paid Content, the word straight from the companies’ spokespersons:
Here’s Microsoft’s full statement: “Microsoft no longer represents Facebook’s display advertising in several global markets, however our contract for display advertising with Facebook in the U.S. remains unchanged at this time.”
A Facebook spokesman, meanwhile, tells us: “After talks with Microsoft, we have recently decided to stop running their banner ads on Facebook in some international markets. 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. Facebook ads can also be targeted to people based on the information they provide. This combination of targeting and social relevance is the primary driver behind the shift in strategy.”
Looks like the love fest is over – and MSN is left with egg on their face after yet another failed attempt to compete as a major advertising company.
Tags: banner ads, Facebook, MSN