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Facebook, Google Reach Surprise Detente On Advertising

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Even since Facebook launched its advertising exchange last year, allowing advertisers to target consumers more easily while they're on Facebook, one big player hasn't been allowed to participate: Google . That's about to change.


Google announced today that after a year of getting excluded from the Facebook Exchange, its display-ad buying software will be able to place ads on the exchange within a few months. Google's DoubleClick Bid Manager, formerly Invite Media, is one of the largest so-called demand-side platforms that helps advertisers buy ads on many websites.


In the next few months, according to a blog post today by Payam Shodjai, a DoubleClick senior product manager, advertisers using it will also be able to use Bid Manager to buy ads on the Facebook ad exchange. That means advertisers will be able to use the Google service as more of a one-stop shop for buying ads online.


Since it launched in June 2012, FBX, as its known for short, has allowed advertisers to 'retarget' customers who browsed or shopped on their site and then clicked over to Facebook, using the targeting markers called cookies. This was a very big deal for advertisers, because people spend so much time on Facebook, thus creating a huge amount of ad inventory.


Facebook has never discussed why it has excluded Google from FBX, but it has been assumed that it didn't want such a huge, direct competitor to get access to its users on its own site, or at least that it didn't want to do anything to make Google and DoubleClick an even bigger force in online advertising.


But it appears that they've come to some kind of agreement, though Google declined to reveal more details. There may simply be a recognition by Facebook, too, that anything that gets more ads on the service helps Facebook. The change will take a few months of technology work behind the scenes to set up, Google said.


Why the change? Google's not saying, but in recent months, a couple of developments have forced the two companies to work together more closely. Google bought the social ad firm Wildfire to manage Facebook campaigns in July 2012. For its part, Facebook bought the ad serving firm Atlas from Microsoft in February, and that technology serves ads on Google's ad network and uses its search ad software.


The change could affect the business of other demand-side platforms such as Turn, which have benefited from Google's absence on the Facebook exchange by stepping in to provide services instead.


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