According to the Wall Street Journal, Facebook announced this morning that it is planning on launching a new ad system in which marketers can target specific user profiles. They will soon be able to provide their advertisers with the myriad of information that can be found in a single Facebook profile.
It’s about time! The potential value of Facebook has not even been fully realized because a system like this is not in place. The overwhelming benefits of the social networking giant are in their hierarchical organization and the vast amount of information they’ve compiled on all of their users. What have they been waiting for? It’s time they man up, and start using these benefits to their advantage.
Even more interesting is how Facebook plans to develop and serve their ads. They’re going to be based on keywords, which will be placed next to search results within the site. This new system will allow anyone to bid on a given keyword or key phrase and have their ad target specific user profiles. Although it’s the same basic concept as Google’s Adwords, it can potentially be much more powerful. In using its more focused keyword targeting to serve ads to Facebook’s coveted user base, the new ad system has the power to increase advertiser’s conversions and ROI.
The ad system is still in early stages of development and is planned for a beta launch in the fall. The full article can be found here.
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