Facebook sought to rewrite the playbook on Internet advertising Tuesday by introducing an innovative plan that helps companies target messages at networks of interested consumers.
The effort, called Facebook Ads, directs ads to people who link to the Web pages companies create on the popular social-networking site. Companies then send ads to that person, and the ads are visible to his or her network of friends.
The Facebook unveiling follows by one day the announcement of a less ambitious ad system by social-networking rival MySpace. MySpace, which is owned by News Corp., said it has 50 advertisers - including companies such as Procter & Gamble and Ford - using its "HyperTargeting" to target ads to consumers based on areas of interest.
The Facebook plan goes a step further by harnessing the power of "perceived endorsements" because the ads go to friends, where a relationship of trust has been built.
Thursday, November 8, 2007
Facebook Ad System Will Outpace Myspace
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