Facebook Dumps Microsoft for Display Ads; Expands Search Deal

Palo Alto, Calif. -- Microsoft said that it will no longer sell display ads on Facebook, while at the same time expanding its search advertising partnership with the Palo Alto-based online social network. Facebook already had assumed responsibility for selling its own display ads in a number of foreign markets. "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," Jon Tinter, general manager of Bing at Microsoft, wrote in a blog post. Under the expanded search partnership, Facebook will provide "full access to great Bing features beyond a set of links, including richer answers combined with tools that help customers make faster, smarter decisions." Bing will now also power search on all of Facebook's properties worldwide, instead of just in the U.S.
http://www.bing.com/community/blogs/search/archive/2010/02/05/enhanced-cooperation-with-facebook-on-search.aspx