What Google can go with MySpace, Microsoft can retaliate with Facebook: in a hastily reached deal, MSFT will be the exclusive provider of advertising to Facebook. For now, unlike Google-MySpace, the three-year agreement will start with banner advertising but in the future will include text ads using MSFT’s own service, AdCenter. Other terms of the agreement weren’t disclosed. Discussions began late last week and the deal was signed over the weekend, says WSJ…the ads will start appearing this fall.
Microsoft and Yahoo lost in the bid to power search and text advertising on MySpace….in that deal, Google guaranteeing News Corp. a minimum of $900 million in ad revenue over roughly three years…MSFT says the terms are not comparable, but no further details.
Release: “Will collaborate to bring relevant advertising to the more than 9 million registered users of Facebook”.
— Fox Interactive’s Call For A Search & Contextual Ad Vendor Answered: Google; $900 Million Guarantee
— FIM-Google: Levinsohn: “When Sergey Comes Down, They’re Pretty Serious”