tech - hawg
Wednesday, August 23, 2006
  Facebook choose Microsoft over Google

Ouch. This has to be at least a little disappointing for Google. Microsoft is going to be the major provider of providing advertising for Facebook through Microsoft AdCenter links and ads. The terms of the deal have not been released nor have we seen any figures being tossed around. We're guessing that Microsoft put up some serious money to get into the contextual advertising game. Since Google landed a deal with Fox Interactive's MySpace in which they will pay out $900 in order to server the 100+ million MySpacers with contextual ads, I am betting Microsoft did not want this deal to slip away. Michael Arrington of Techcrunch fame goes as far to state that Microsoft may even be taking a loss in order for them to close this deal.

What's interesting to me though is that Yahoo actually forbode Yahoo Publisher members from advertising on/with MySpace due to low clickthrough quality. Basically, it was a waste of clicks and money for Yahoo's customers. So Yahoo moves away from advertising with MySpace and a few months later Google agrees to pay MySpace nearly $1 billion ($900 actually but $1 billion sounds so much...bigger) for the ability to advertise on the MySpace network. Then Microsoft hops into bed with Facebook. Doesn't this make Yahoo look like the only one who isn't getting it or are Microsoft and Google doomed to fail? My bet is on the former rather than the latter.
 
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