Microsoft's AdCenter beat out Google to be the exclusive provider of ads on FaceBook, the top site for college age people. Recently Google paid $900M to MySpace for the privilege of serving ads to MySpace's teenager audience.
Financial details were not disclosed but Microsoft VP Steve Berkowitz said “not comparable to the MySpace deal because we focused on the right economics for both parties.’’
FaceBook COO said Owen Van Natta said Facebook chose Microsoft because the company’s technology and approach are a better fit. “We think they have a real understanding of the need to take a fresh approach to advertising and social media.”
FaceBook has 10 million members, all college age people. MySpace has 100 million users, mostly teenagers. Which is the better demographic for advertisers? Which market will attract more advertising dollars? Did Microsoft make the better financial deal? Time will tell.
Microsoft's AdCenter is a new technology for ad serving. Microsoft severed its relationship with the Yahoo ad service and is now serving its own ads on Microsoft sites. This will be a big business for Microsoft in the years ahead.
