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Will the Microsoft-Facebook search partnership result in ad revenue?

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Tech-sector behemoths Microsoft Corp. and Facebook said this week that they're teaming up to integrate more Facebook information, such as user “likes,” into Bing's search results. The move is obviously a shot across Google's bow, and if it slices into Google's share of the search market, it could reap ad revenue benefits for Microsoft.

Here's some reaction to the move from around the Web:

  • Alone, neither Microsoft nor Facebook was expected to be able to take on Google with its massive coffers and dominant market position. But together, the two companies have a better chance of at least slowly chipping away at Google's search dominance.” Sharon Gaudin, Computerworld.com
  • “News that Bing, Microsoft's search engine rival to Google that differentiates itself by the moniker ‘decision engine,' is going to employ Facebook results in its searches, is an opportunity for Facebook to overcome its growing rivalry with Google and for Microsoft to continue to capture search engine and online advertising market share.” John Kennedy, SiliconRepublic.com
  • “Eighty percent of people delay making a decision, such as an online purchase, until they get some sort of positive feedback from a friend, [Microsoft] says. The new social features aim to make that process faster and more efficient…Of course, it's also liable to pay dividends with Bing's advertisers. Online retailers continually express frustration over the fact that a huge portion of customers will vanish from their site one step short of completing a transaction.” – James Temple, Benny Evangelista, SFGate.com

Both marketers and consumers should also keep an eye on the privacy backlash, if any, to this announcement, especially after Facebook reportedly hired PR firm Burson-Marsteller to plant negative stories about Google's privacy record in the press. Facebook, of course, is not immune to bad press about privacy.

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