Friday, November 16, 2007

Facebook sells users to corporates

WILDLY popular social network Facebook is to test the loyalty of its 50-million-strong user base, unveiling a new advertising system that targets its users based on their personal preferences.

The company is also announced plans to allow corporations to launch dedicated brand pages on the service, saying it had already signed deals with dozens of companies, including Coca-Cola, Blockbuster and eBay.

Facebook Ads would allow marketers to become “part of the conversation,” Facebook founder and chief executive Mark Zuckerberg told a conference in New York.

The highlight of the system is that “users can now learn about new businesses, brands and products through the trusted referrals of their friends,” the company said.

The Facebook ad system was expected, but its invasiveness has surprised some users. Groups have already appeared on the service protesting the use of personal information by the system.

Facebook’s corporate blog said the Facebook Ads system improved the service for its users. It promised its pages would remain clean-looking, and that users would not see any more advertisments than they see now.

The company also said the service would allow its users to keep in closer contact with the brands they feel “passionate” about.

Mr Zuckerberg said the social network’s role in advertising was becoming increasingly powerful.

“Social actions are powerful because they act as trusted referrals and reinforce the fact that people influence people,” said Mr Zuckerberg said.

“It’s no longer just about messages that are broadcasted out by companies, but increasingly about information that is shared between friends. So we set out to use these social actions to build a new kind of ad system,” he said.

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