Bing was previously integrated with Facebook only inside the US.
Facebook hopes that by being in control of its display ads, it will be able to offer users better-targeted ads based on their profile information.
As part of the revised deal, Microsoft's Bing search engine will now play a more prominent role on the social network site, providing users with improved search results based on Facebook data.
The ad deal dates back to 2007 when the technology giant invested $240 million in Facebook. The deal made it the exclusive search partner for the site as well as giving it the right to sell some of Facebook's display ad inventory.