Who told you that Facebook isn’t making enough money, who said Facebook lack focus on site monetization? They have been rumor on the web that the leading Search Company Google has been working inside Facebook. There have been reports that the Search Company has been busy filling ad inventory on Facebook site and according to the reports things have been going well. Will Facebook embrace Facebook AdSense? The Google advertising works inside Facebook is not a joke, it is real and reports have been confirmed. The two companies finally work together, this sounds pretty weird to us considering that the two got fierce rivalry. Google’s OpenSocial platform was launched to counter the threat of Facebook platform craze and both companies are preparing themselves in the much anticipated battle of Facebook Connect and Google Friend Connect. Both companies are struggling to establish their own tool as the dominant online identity standard for both developers and users. The rivalry heats up when Facebook blocked Google’s Friend Connect service from accessing Facebook member’s profile. Facebook has even banned Google Friend Connect over Facebook’s privacy issues. If there’s anything that could slow down Facebook’s rapid growth, it’s definitely Google; it’s the only Company on the web that could threaten Facebook’s expansion. For the Mountain View based Company Google, Facebook is a threat; the Search Company has relied on an open internet to make its entire business. Social networking site like Facebook is a threat to Google’s business because users tend to stay within Facebook’s “walled garden” and communicate among themselves and they’re not using Google. The Search Company has a business plan that depends on the web, it core technology search depend on openness. What exactly is going on here? This appears to be a case of Silicon Valley speaks “frenemies” companies works together in one particular field and compete in others. Google has already run some test advertisement on Facebook. Working with Google is great; it got a pretty good reputation, global presence, all right online advertising system and best of all nice brand name. Still we don’t exactly know how Google could work on Facebook site. The super hot social networking site is well known to the advertising world for its penny ads spaces CPMs. At Facebook, ads could be sold for as little as 15 cents per 1000(CPM) compared with the estimated $13 at Yahoo, those ads spaces are at bargain price. When Facebook unveiled Facebook platform last year, a plethora of new startups spawned around the social networking site each vying for a piece of social advertising spaces, companies like Social Media, Lookery emerged from the haze. These startups have quickly learned that social ad spaces are not a good place to do business and a poor place for startups to compete. According to AllFacebook startup like Lookery sold their ads network specifically business is tough in social ads spaces. Facebook’s social ads spaces are a brutal place for startup like Lookery. Companies that could thrive and succeed in this place must get ability to scale on the sale side. Big companies like Google and Microsoft are the kind of companies that could thrive in this kind of environment. Facebook’s social ads spaces requires size and smarts, Microsoft got size while Google has both. Google could be the perfect company to do business on Facebook social ads spaces. Both Microsoft and Google now are doing business with Facebook. The real question that everyone is wondering is what about Microsoft business on Facebook? The Software Company has also done some online advertising deal on Facebook and it got huge investment, Microsoft paid $240 million for just 1.6% of Facebook, giving the social networking site a staggering market valuation of $ 15 billion. Microsoft has paid premium to thwart Google or Yahoo attacks, and just to keep Facebook out of Google and Yahoo hands. I’ll already write about Microsoft-Facebook advertising partnership and also I mentioned on my earlier post about the rumored Microsoft–Facebook Search deal. What next for Facebook? OpenSocial on Facebook? Well let’s just wait and see what next.
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