When Microsoft invested $240 million to take a small stake in Facebook, the deal almost more about securing an ad deal as it was an equity investment. Now, almost two years later, Microsoft is starting to see some of its advertising pulled as Facebook continues to create its own ad options and revenue models.
According to BusinessWeek, Facebook has dropped Microsoft’s banner advertising in several international markets, and is now considering the same in the U.S. markets. Microsoft serves fairly generic banner advertising on Facebook. As the display advertising market continues to innovate, Facebook is also pushing more engaging formats, like brands promoting their Pages and encouraging Facebook users and their friends to become fans as well.
It seems that Facebook’s social ads are performing well and it is likely we’ll hear more news about advertising innovations and advertising options in the coming months. It will be interesting to see if these changes begin impacting Bing powering web search results on Facebook – which was included in the deal.