The world’s biggest social media site, Facebook, are to dump Microsoft adCenter as they prepare to launch their own advertising platform. But with the original deal not running out until 2011, full worldwide Bing integration appears to have been the real deal sweetener.
Evidently the Facebook site is a lucrative place for any advertiser to show their products and is equally effective in delivering money to the host – Microsoft. However, in something of a surprise move, Facebook have ended their agreement with the technology giant to manage their advertising system in-house.
With a year left in the contract, clearly Microsoft will seek something in return and it appears as though it may come in the form of Bing being integrated into Facebook as the default search engine, worldwide. Obviously the exact nature of the agreement is still largely under wraps, but it appears that Bing could be set for a huge promotional push, starting off with 350 million+ Facebook users.
This is going to be a key year for Bing as it looks set to become integrated in Yahoo, is the search engine of choice for iPods [see: Can Bing (With a Little Help from Apple) Toppled Google in Mobile Search] and now could appear on the pages of Facebook. It’s a big job trying to haul in Google, but evidently Microsoft are putting plenty of effort behind their search engine currently.
For Facebook it provides an opportunity to get to grips with their own advertising network and adjust it to better suit their users’ requirements. It will also give them a chance to create a larger revenue stream themselves, without having to pass on their percentage to Microsoft.
This appears to be something of a mutually beneficial situation, with both parties getting what they really need (Facebook – more control and clearer income source, Microsoft – added exposure for Bing). Facebook advertisers will have to be aware of the changes in the pipeline, whilst Microsoft will just have to keep their fingers crossed that their Bing push starts to reap some rewards soon.