Facebook Ad Deal

Facebook Draws Advertising Strategy

August 23rd, 2007 by Arnold Zafra | No Comments

Despite establishing itself as a contender into the social networking arena, Facebook up to know is still uncertain on how to put in more revenues into its bank accounts. Facebook has been struggling on the financial side especially since owner, Mark Zuckerberg has consistently turned down buyout proposal from several giant companies. But things seems to be on the positive note now with Facebook as The Wall Street Journal reports that the second most popular social networking site is drawing up a plan to set up an advertising system that aims to accomplish what Google did with its advertising program, Adwords. That is, allowing anyone to purchase relevant “keywords” online.

Facebook will utilize the information that its member put into their public profiles to identify relevant ads that will be integrated into the news feeds of activities that are visible to members’ networks of friends.

Using its technology, Facebook will pinpoint to advertisers, members’ networks which would be most interested to their particular product. To safeguard members’ personal information from advertisers, Facebook would not divulge the members’ information but instead will just direct advertisers to relevant networks where they could target to serve their advertisements to.

With this new plan on advertising scheme, Facebook is hoping to get in more revenues into its accounts which are very vital to Facebook’s survival. Being the only privately owned company among the social networking industry, Facebook is facing a tough challenge on its income generation program.

A big part of Facebook’s fate hangs in the balance. And advertising revenues would play a big role in determining that fate. Should Facebook succeed in generating more revenues from this advertising program, then it can give its closest rival, MySpace, a good battle in the social networking market.

source : searchenginejournal.com