VentureBeat

Is Google-the-Goliath sneaking into the Facebook building — via the basement?

Google is actively recruiting third-party developers with applications on Facebook to run Adsense ads within applications pages, VentureBeat has learned.

These aren’t just any old Adsense ads, according to our sources — developers have been inserting plain-vanilla Adsense into Facebook applications since the developer platform launched in May. Now, Google is specifically building this network for advertisers who want to be on Facebook, and will let advertisers run their ads across all Facebook apps that sign up for it.

Facebook has been clear about letting third-party developers sell ads on their own “canvas” pages on the site and keep all the revenue — a loophole that the Google seems to fit through just fine. See sample screenshots of what the Google ads will look like, taken here from Fantasy Stock Exchange and South Park Character Creator (and no, I don’t regularly use either app):

Microsoft has already inked an exclusive deal with Facebook to sell ads on Facebook pages within the US. By selling ads on third-party applications, Google is doing an end-run around this deal.

When it comes to Facebook and social networking, Google is apparently firing on all fronts.

Building relationships with Facebook advertisers also allows Google to test how to successfully monetize third party applications before it introduces its own developer platform. Google is apparently set to make an announcement on November 5 that it will give third party developers access to user data in Orkut, its own social network which is popular in Brazil and India but not in most other countries. To this end, it is also actively recruiting third-party developers on Facebook to develop on Orkut, we are told.

Google is also rumored to be in a three-way competition with Microsoft and Yahoo to sell ads on Facebook’s own pages outside of the US. Like its two competitors, it is also rumored to be trying to buy a chunk of Facebook.

So far, only third-party startups that have launched ad networks for applications on Facebook, including those run by RockYou, VideoEgg, Social Media, Lookery and others. Some of these networks sell contextual text and video ads within an application’s pages. Some even sell ads on popular Facebook applications for less popular applications, so the latter group can try to convince Facebook users to add their application as well. Also of note: We’ve also been hearing rumors that Facebook is working on its own ad network for applications within Facebook.

Whether anyone can make big bucks from third-party applications is another question. We’re hearing from developers that all of these ad networks work about the same. We’re hearing some — those with 50,000 active users or more - are even getting enough to pay for their servers, room and board. That’s enough to avoid taking on funding while you work out your long-term business strategy.

Google has responded with the usual “no comment.”

Here’s the latest action:
–Jajah goes after Skype’s turf on eBay
–Nokia buys Navteq, what does Google do?
–YouTube intros Adsense
–Yahoo lags on universal search
–Viacom backs DRM
–Technorati’s new CEO
–Costs of a start-up

Jajah tries to exploit Skype dissatisfaction, releases button for eBay — Now that eBay has admitted the Skype acquisition didn’t pan out as expected, and that the Skype co-founder Zennstrom has left earlier than the desired retention date of 2008-2009, eBay is probably pretty fed up with the Skype story. Well, Jajah, a competing Internet service, is rubbing it in. It is bringing its new button (see our coverage) eBay, an invading what should be Skype’s turf. As we mentioned, Jajah’s button is perfect for small businesses wanting a toll free 1-800 number, just the sort of customers eBay has, and which Skype was supposed to serve. From Jajah’s statement: “With Buttons, JAJAH goes beyond Skype –beyond the headsets to calls received on all phones, beyond the regular quality concerns and beyond the limitations of the closed nature of the Skype userbase. Unlike other Internet calling solutions, JAJAH Buttons on eBay: 1. assures the merchants privacy 2. can be customized by when they want to receive calls and from what countries 3. it does not require a download, headset, contract or broadband and 4. works on every phone….” The list goes on. here’s an example.

Mobile-phone company Nokia has agreed to acquire electronic mapping company Navteq, for $8.1B– This should shake things up a bit. Google uses the mapping-navigation software from the company, and it comes at a time when Google is about to release a major mobile phone offering (depending on the market, Google will offer varying services; few people believe its actually manufacturing its own phone; it will leave that part to the vendors). Now Nokia has swallowed it, and it could leverage this against Google, or in talks with Google about services offered with its phone. Navteq’s technology is behind vehicle navigation devices and is allowing mobile-phone applications with location-awareness, good for things like shopping, emergency services and targeted advertising. Statement is here.

YouTube introduces Adsense to run alongside videos — It’s just the latest effort by Google to monetize YouTube after it shelled out $1.6 billion for the company.

Yahoo introduces “universal search” features — Yahoo continues to lag behind the rest of the field on innovation on its search results. Google, Ask and Microsoft have all introduced something that has come to be known as “universal search,” or providing all kinds of content in results beyond the traditional ten text links. So now Yahoo jumps on the bandwagon and is now also offering things like video and images in its results when you search for certain things, such as rock bands. It’s also introducing something called “suggestive search,” a technology that guesses what you’re typing in the query box if you’ve already written a word and hesitate for a second. It gives you more clues to what you’re trying to find, and is an obvious feature to offer. Yahoo’s market share in search continues to drop. It won 19.9 percent of total search market share in August, down from 24 percent the same month last year, according to Neilsen/NetRatings.

Technorati gets a new chief executive — The blog search engine has lost its way, recently redesigned its site, but has yet to articulate a clear direction. It’s not certain what a new chief executive Richard Jalichandra can do to help it turn around. Announcement here.

Viacom CEO Phillipe Dauman says company will stand by digital rights management — As companies like Apple and Amazon do their utmost to abandon DRM, Viacom will continue the battle in its support. Speaking at an antipiracy summit, Dauman said that his company prefers to deal with the piracy issue in a free market, rather than introducing new laws. However, he also suggested that piracy might be better addressed through international trade agreements, seemingly implying that sites like the Pirate Bay could be stomped out by placing more pressure on their home countries. Dauman’s speech shows that the internet’s copyright battles are far from over; he called the upcoming court decision on Viacom’s case against YouTube, now owned by Google, a “landmark case that will clarify the rights and responsibilities of all media and content owners.” A decision against Google could carry serious implications for dozens of smaller sites. Via CNET.

Costs of a start-up, broken down —Redfin’s Glenn Kelman breaks down the various costs, from rent to salary and more, of a start-up. So when your VCs and advisors are asking you to come up with those dang financial models, you have somewhere to go. Very useful.