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

Related Topics

Stocks

   

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)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
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
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Smartphone Wars

Reuters Showcase

Cloud Solutions

Cloud Solutions

Tencent teams up with IBM to offer business software over the cloud.  Full Article 

Cook Comes Out

Cook Comes Out

Apple's Cook: "I'm proud to be gay".  Full Article | Related Story 

 Rubin Quits

Rubin Quits

Android co-founder Andy Rubin to leave Google.  Full Article 

Glowing Flower

Glowing Flower

Video: Genetically altered glowing flower on display in Tokyo.  Video 

Web Fast Lanes

Web Fast Lanes

Comcast, AT&T seek to reassure on no plans for Internet 'fast lanes'.  Full Article 

Tech Reshuffle

Tech Reshuffle

Twitter product chief sidelined as user engagement slides.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage