Microsoft expands Facebook deal

Microsoft has expanded its search and online advertising deal with Facebook, the social networking site it bought a 1.6% stake in last October. It is a similar to MySpace’s deal with Google and Bebo’s with Yahoo!.

The partnership was announced yesterday (July 24) at Microsoft’s annual investor meeting in Washington, where chief executive Steve Ballmer revealed details about the company’s online strategy following its failed bid to buy rival Yahoo!.

He says that Microsoft will continue to invest heavily in search and bolster its 3.5% share of the global search market and it is thought to be looking at a number of deals with other sites to achieve that.

Ballmer adds: “Search is one of the starting points on the internet. It’s the best place to distribute new internet services to the consumer.”

It also follows news that Kevin Johnson, the executive who led Microsoft’s $47.5bn (£95bn) failed bid to buy rival Yahoo!, was leaving the company.

Microsoft already has an exclusive agreement to deliver banner ads on Facebook pages, but the expanded deal will give Facebook better search capabilities. Facebook founder Mark Zuckerberg says: “Search in Facebook definitely needs to get better.”

Facebook currently uses a homegrown search engine for its social network, and it does not include results from the Web. The deal with Microsoft will be exclusive for the US only.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here