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Facebook Ads

Zuckerberg Announces Ad Revenue Platform

— November 7, 2007 — Lifestyle
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.