Under the new arrangement, Microsoft will trade it’s exclusive global advertising placement on Facebook for having Windows Live Search integrated into the Facebook environment. Facebook user search queries will generate search results (that include paid search ads) generated by Microsoft’s Live search engine.
Microsoft’s Steven Ballmer announced the new deal today as a part of their response to the failed Yahoo takeover. This new deal is just another notch in Microsoft’s strategy to gain search traction. So far the strategy, in all of it’s desperate glory, has failed.
Will this be a turning point for Microsoft?
Doubtful. It will be a nice step for Microsoft, but as New york Times quoted Danny Sullivan regarding the new deal…
“Facebook is one of the few virgin territories left, it gets Microsoft potentially a lot of distribution. It is not a game changer, but it is an important deal.”