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Facebook's New Ad Strategy

Posted on 8.23.2007

The Wall Street Journal reports that Facebook is planning an advertising strategy similar to Google's famed AdWords. Anyone on the rising social network can bid on keywords. Those keywords will be matched up with information on user profiles and preferences (activities, music, hobbies, etc.) and relevant ads will be displayed.

It will be interesting to see how Facebook users react to targeted ads. While Facebook vows to keep personal information private, there could be a backlash if users feel that their pages are being mined for data by advertisers. Many social networkers take pride in their profile pages as a creation - they can be highly customized with images, videos, music ... these profiles become a sort of personal space. Facebook could face much of the same challenges as intrusive mobile advertising or even video. As we saw earlier this week, YouTube video creators had a strong and negative reaction to InVideo ads - seen as another infringement on a creative, personal platform.

However, independently owned Facebook needs the extra revenue to compete with other, corporate owned social networks like MySpace. That said, Facebook is on track for a $30 million profit this year.

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