Facebook removes Microsoft banner ads from site

Facebook is taking full control of display ads on the world's No. 1 social networking website, cutting short an exclusive deal that had allowed Microsoft Corp to manage part of that business. However, Microsoft, the exclusive provider of Web search on Facebook, will continue to sell text-based search ads on the website as the partners extended the arrangement beyond 2011, when it had been due to expire. A Facebook spokesman declined to say how long the deal has been extended. Microsoft also said it will further integrate its Bing search engine into Facebook while expanding its reach beyond the United States. Facebook, which counts nearly 400 million users, said its own display ads feature interactive aspects and can target viewers based on their personal information, making them better suited to its social networking service than Microsoft's standard Web banner ads. "Ad formats that feature social actions perform better and provide a better user experience since they are more consistent with the look and feel of Facebook," the company said in a statement. "This combination of targeting and social relevance is the primary driver behind the shift in strategy."