Facebook expands ad business to Zynga's website

SAN FRANCISCO Sat Jun 23, 2012 1:44am IST

In this photo illustration, a Facebook logo on a computer screen is seen through a magnifying glass held by a woman in Bern May 19, 2012. REUTERS/Thomas Hodel

In this photo illustration, a Facebook logo on a computer screen is seen through a magnifying glass held by a woman in Bern May 19, 2012.

Credit: Reuters/Thomas Hodel

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SAN FRANCISCO (Reuters) - Facebook Inc (FB.O) has begun showing ads on Zynga Inc's (ZNGA.O) website, the first time the company has distributed ads beyond the borders of its own website and raising the possibility that Facebook could eventually launch an online advertising network.

"People may now see ads and sponsored stories from Facebook on Zynga.com," said Facebook spokesperson Tucker Bounds. He said that Facebook does not share information about people or advertisers with Zynga, and that Facebook's advertisers do not have any new "targeting criteria."

Asked if Facebook was planning to create a full-fledged online ad network that distributes ads on other sites, Bounds said "we are only showing ads on Zynga right now."

Zynga was not immediately available for comment.

Shares of Facebook, the world's No.1 social network, were up 4.4 percent to $33.25 in mid-afternoon trading on Friday.

Facebook's stock has been under pressure since its initial public offering last month, due in part to concerns about the company's slowing revenue growth.

Facebook made most of its $3.7 billion in revenue last year from ads that appear on its site.

An ad network could significantly increase the reach of Facebook ads, offering an important new source of revenue growth.

(Reporting By Alexei Oreskovic; Editing by Phil Berlowitz)

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Comments (1)
Shab wrote:
I feel this is a good move by facebook. I had personally felt Ads in facebook had become invisible these days, the more i use facebook the more i ignore facebook ads. I tend to generally browse through the comments and scraps in a good speed as only few will be of my interest, and close once done. In case like mine, facebook Ads in other sites may help facebook ads reach. However, even this only time can answer.

Jun 25, 2012 11:35am IST  --  Report as abuse
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