Microsoft loses Facebook display ads, but expands search deal |
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Microsoft loses Facebook display ads, but expands search deal
Good news and bad news for Microsoft this morning in its Facebook relationship.
The Redmond company, which has a minority stake in the booming social networking site, said in a blog post that the companies are deepening their relationship in Internet search, working on new features and expanding into markets outside the United States. At the same time, the company says it will no longer be responsible for display ads on Facebook. Microsoft calls it a "mutual decision."
"Given the kinds of advertisements that make sense within a product as unique as Facebook, it just made more sense for them to take the lead on this part of their advertising strategy," said Bing general manager Jon Tinter in the post. "MS will continue to provide search advertisements to Facebook."
The announcement coincides with the unveiling of a major Facebook redesign today.
Previously: Microsoft pays the price, literally, for Bing's bigger market share.
About Todd Bishop
Todd Bishop is co-founder and managing editor of TechFlash. He has covered Microsoft and the technology industry for more than five years, most recently as a daily newspaper reporter and blogger based in Seattle.
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