Microsoft recently expanded its ad deal (signed two years ago) with social networking giant Facebook. Microsoft presently manages and sells all display ads of Facebook. Microsoft will widen the scope to provide search and paid listings.

Both the companies are working on an API for Facebook in turn, creating a rich search experience. The API to be launched in autumn will even offer web search to Facebook users. The web search option will open a whole new doorway to Facebook’s functioning.

Facebook stated:

We think that it’s something that made a lot of sense as an extension of what we can offer users and advertisers on the site.

The company is yet to work out how Microsoft’s search will be implemented, and would not estimate the amount of search ad inventory Facebook might represent to Microsoft. This move will surely help Microsoft boost its search query volume and indirectly its low RPM in comparison to market leader Google.