In a major U-turn, Facebook is finally allowing Google to run is Doubleclick display ads on its ad exchange.
The move means that Facebook users will start to see display ads served by Google’s ad placing service, giving both companies a potentially lucrative new stream of ad revenue and commission.
The announcement surprised some analysts as the two companies are fierce competitors in the digital ad market.
However, the move could benefit both companies, with Facebook is hoping to sell a higher volume of product and Google collecting a small commission fee for each customer it sends to Facebook.
Prior to yesterday, Facebook did not permit the Google-owned service to sell ad space at the world’s leading social network, and the firm provided no reason for either the initial exclusion or the sudden change of heart.
“Partnership has been key to Google’s success as a rising tide lifts all boats,” DoubleClick senior product manager Payam Shodjai said in a blog post. “So we’re excited to announce a new way to help our clients succeed by working with Facebook to participate in FBX, their real-time bidding exchange.”
“Starting in a few months, clients will be able to buy inventory on FBX via DoubleClick Bid Manager,” Shodjai said.
DoubleClick Bid Manager lets marketers to buy online ad space at websites across the Internet.
Auction services like DoubleClick rely on a massive amount of inventory to sell to customers.
With the addition of Facebook Exchange, DoubleClick will significantly expand its inventory.
The news comes as Google shares topped $1,000 for the first time, priced at $1,011.41 at the close of the Nasdaq on Friday and continued to climb in after-market trades, on the back on better than expected financial results.
Facebook shares also hit a new all-time high on Friday and closed at $54.22 a share.
Read the DoubleClick blog post here