Early monetization: Microsoft deal

Ralph recounts Facebook's 2006 Microsoft partnership as its first major monetization step and strategic pivot.

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Episode notes

We continue our discussion on why Meta is still the most powerful ad platform and what to expect in the coming year. We break down how Facebook figured out monetization, from early Microsoft deals and disastrous missteps like Beacon to right-hand rail ads and the moment ads entered the newsfeed.

We’ll walk you through the desktop era, the transition to mobile, and why Meta’s make-or-break moment before its IPO changed everything about how ads work today. Plus, we connect the dots to what’s happening right now with the Andromeda update and the increasing need for creative diversification.

In This Episode:

- Why Meta’s global reach matters

- Meta’s early advertising mistakes

- Facebook’s Beacon backlash explained

- The right-hand rail ads era

- Mobile ads turning point

- Why Andromeda update changes everything

Mentioned in the Episode:

Previous Episode on Why Meta is The Best Ad Platform: https://podcasts.apple.com/us/podcast/why-meta-is-the-best-ad-platform-on-the-planet-in-2026-part-1/id1022441491?i=1000741985274

Acquired Podcast’s Episode on Meta: https://www.acquired.fm/episodes/meta

Perpetual Traffic YouTube Channel: https://www.youtube.com/@perpetual_traffic?sub_confirmation=1

Facebook’s Failed Beacon Project: https://www.cbc.ca/news/science/facebook-shuts-down-beacon-marketing-tool-1.832698