Tidbits from Facebook-Microsoft Press Conference October 24, 2007Posted by David Card in Media.
Almost live from the press conference:
Not much detail. Deal expands AdCenter’s exclusive as the third party network for Facebook into int’l markets. It doesn’t include search. No comments on guarantees, terms, etc. No comments on other potential partners.
Kevin Johnson, Microsoft’s prez of platforms & services division, said Facebook’s $15B valuation comes from extrapolating to a 200 to 300 million user base for Facebook, with a modest $$/user/year revenue stream. Three hundred million users? Where? China? (Facebook claims 50M now.)
They work together on lots of things. But they’re not telling what.
Facebook chief revenue officer Owen Van Natta finally said something about the potential for Facebook app developers to tap into AdCenter or other ad revenue streams. Finally. You know my rap: this is the way it should work for developers: allowing them to build their own revenue streams is a bug, not a feature.
Facebook will use the money to hire developers and buy servers. Not to hire an ad sales force, apparently.
New targeting schemes? Facebook says it focuses on user trust. But there are “certain details of the partnership we’re not disclosing…AdCenter is a big platform with massive scale…would imagine that would be leveraged on Facebook” at some point.
Microsoft says a lot about how Facebook is innovating on new ad formats unique to social networking.