From Inc.com regarding Microsoft’s staggering investment in Facebook (emphasis mine):

The software megalith paid $240 million for a 1.6 percent equity stake in the fast growing social network. That’s a lot of money, but the real reason for the Facebook brouhaha is the valuation: $15 billion dollars for a company that has revenues estimated at $150 million, profits of approximately $30 million, a flip-flop wearing 23 year old of a CEO. The idea that Facebook might be worth $1 billion let alone $15 billion seemed like near insanity only a year ago, which makes Microsoft’s investment a huge coup for Mark Zuckerberg.

But look beyond the numbers, and you’ll see that this deal has very little to do with valuation. It’s about advertising. Buried underneath the headlines about Zuckerberg becoming really rich, is the fact that Microsoft became Facebook’s exclusive advertising partner as part of the deal and will now be responsible for all of Facebook’s third party ads. This expands upon an earlier agreement, signed in 2006, that made Microsoft the U.S. provider of banner ads.

I’m not sure how much the right to serve third party banner ads is worth, but it’s definitely substantial.

I guess it is substantial. So much for making banner ads look cheap.

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From the JustSell.com newsletter:

The doctors of “Grey’s Anatomy” are reaping rewards “Grey’s” is the most expensive show this television season, bringing in $419,000 per 30-second commercial, according to AdAge.com. That’s $25,000 more than last year’s top show, “Desperate Housewives,” commanded per
30-second spot.

Here’s the fall lineup, in terms of advertising dollars…

“Grey’s Anatomy” – $419,000
“Sunday Night Football” – $358,000
“The Simpsons” – $315,000
“Heroes” – $296,000
“Desperate Housewives” – $270,000
“CSI” – $248,000
“Two and a Half Men” – $231,000
“Survivor: China” – $208,000
“Private Practice” – $208,000

The show that has them all beat? A 30-second spot in this year’s Super Bowl cost $2.6 million.

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