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After losing out to Google in the race to sign up Myspace as an advertising client, Microsoft has landed a deal with the US' second largest social networking site Facebook.
In one of the first high-profile agreements for the software giant's adCenter platform, Microsoft will start providing Facebook with banner ads and sponsored links later this year.
With the arrangement expected to last until 2009, Microsoft said it would sell “graphical ad placements, as well as automated text-based advertisements targeted to content and, over time, aggregate user behaviour on an anonymous basis”.
Financial details are yet to be released, but it will be interesting to see Microsoft’s expectations of the deal’s potential returns. Google paid US$900 million for its exclusive ad-sharing deal with Myspace, announced earlier this month.
According to Nielsen/NetRatings, Myspace attracted over 45 million visitors from the US in July, while Facebook secured just under eight million.