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Facebook has finally announced plans on how they will use their power to produce big money. As anticipated, the social network will implement a new ad revenue platform, called Facebook Ads, that will target the site’s 50 million members. The company, estimated at $15 billion, will allow marketers to track what Facebook users are looking at, particularly what they are buying online. This information will allow advertisers to better tailor content to individual user interest, making the ads much more targeted. Thought your “Favourite Books,” “Favourite Movies” and “Favourite TV Shows” on Facebook were just for your shear amusement? Not so much. It’s all part of a bigger marketing scheme to better target ads. You’ve likely also added your gender, location, relationship status, work history, educational background and interests; likely you’ve added your age as well. You’ve helped make the research a whole lot easier for marketers. “For the last hundred years, media has been pushed out to people, but now marketers are going to be part of the conversation,” said founder Mark Zuckerberg. Forbes Magazine explained Facebook Ads will consist of “Social Ads,” “Targeting” and “Insights.” “Social Ads are little ads that will be attached to news feeds. They will show up on the news feeds that users and their friends subscribe to. Advertisers can bid for the right to place their ads on the feeds used by people with the specific preferences that they want to reach,” Forbes explained. Zuckerberg said 12 major companies have already signed on including Blockbuster, CBS, JPMorgan Chase, Coca-Cola, Microsoft, Sony and Verizon. The video details some Facebook users’ discontent regarding the breach of privacy the marketing scheme could pose.  And there will be pages created by the brands themselves. You can befriend, say, Microsoft or Bertolli Olive Oil. Coca-Cola, for example, is creating a Facebook page that features its Sprite brand. Blockbuster has built an application that lets Facebook users search thousands of movie titles, create lists of movies they want to see and share movie reviews.
Established companies see Facebook Ads as a way to tap into the youth market. "The challenge for us is changing our perception among the digital community," Blockbuster Chief Executive James Keyes told Forbes.com. "Kids don't see Blockbuster as a digital brand."
The new ad system likely will spark privacy concerns, but Facebook executives said users will be able to control what advertisers know about them and their friends.
Another feature, Facebook Beacon, will let third-party sites put a link to Facebook at the end of a transaction so that consumers can let all their friends know what they're buying. Say you put 101 Dalmatians into your "Total Access" queue on Blockbuster. When you next return to Facebook, a popup box will ask if you'd like to share your latest movie choice with friends. Say "Yes," and all your friends will learn that you're into spotted dogs. Blockbuster won't know anything else about you. But Blockbuster can throw in its own Social Ad, promoting say, The Lion King, or other Blockbuster services.
(forbes)References: forbes Filed In: |
