Google Inc (NASDAQ:GOOG) announced Friday it will enter into an alliance with Facebook Inc (NASDAQ:FB) to sell ads on the biggest social networking site, which for users will possibly increase the number of marketing messages in the Facebook user’s news feed. As of now, Google has not announced the exact time when this partnership will kick start.
The search engine giant indicated that clients will be able to buy inventory on FBX via DoubleClick Bid Manager “in a few months.”
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Google will display third-party ads
However, the ads will not only be on Google Inc (NASDAQ:GOOG)—instead advertisers already on Google will buy the space through Google for Facebook Inc (NASDAQ:FB). Advertisers will bid for ad space through bespoke bidding software, Google’s DoubleClick Bid Manager for Facebook’s Ad Exchange (FBX), to buy premium ad space similar to an auction format.
Facebook launched FB Ad Exchange back in 2012, a feature enabling advertisers to place bids on ads targeting users, visiting third party websites, using cookie tracking. As a result, visitors see advertisements related to their web browsing when they login to Facebook again.
Google hoping to gain advertisers’ confidence
Market watchers believe that Google Inc (NASDAQ:GOOG) initiated the deal rather than Facebook Inc (NASDAQ:FB), which can be gathered as Google made the announcement about the deal rather than the other way round, and a second indication that Tech Crunch notes is that DoubleClick, which lets its clients buy ads on various advertising exchanges, and “excluding Facebook may have forced some clients to look elsewhere for their media buying needs.”
Instagram is also gearing up to launch ads, which will in theory benefit from the probable partnership of Google and Facebook. Recently, the search engine giant started a new ad policy, similar to the one crafted by Facebook, through which the ad seller may use members’ photos and names.
Alliance of two rivals
It will be worth watching to see how two arch rivals in social networking space work together. Payam Shodjai, a senior product manager at Google Inc (NASDAQ:GOOG) for Doubleclick, said the company is excited to work together with more companies because “a rising tide lifts all boats,” which implies earnings of one will affect the others also.
From Google’s point of view, it is a strategic move through which it wants to maintain the confidence of its Doubleclick clients even when Facebook, its arch rival, is ultimately the one to benefit.