Microsoft to expand search ad relationship with Facebook

25th July 2008

Internet and software giant Microsoft is to expand the relationship it has with social networking site Facebook, it has been revealed.

A source close to the firm stated that, under the terms of the deal, it will use Facebook to increase the presence of its online search and advertising business.

Expected to be carried out next month, the agreement will enhance an existing arrangement under which Microsoft serves graphic ad displays on Facebook's pages.

Writing in PC Retail, Matt Grainger claims that Microsoft is under pressure to "break into" the online search service market after its failure to take over Yahoo!.

He added: "This deal will guarantee [Microsoft] more traffic, which will boost the effectiveness of its search technology and deliver more relevant advertising to users."

In August 2006, an deal was made between the two firms under which Microsoft became the exclusive provider of banner advertising and sponsored links on Facebook.