Even though people loved the video from my last post, back to writing for this one as my 3 month of sun is sleeping next to me.
I started my morning read with a short blog post on the FT Blogs talking about the presentation being very Jobs like and that there will be no opt-out of the new social ads on Facebook. So what is really happening? TechCrunch actually has a good short summary about “Changing the Face of Brand Advertising Online“:
- Social Ads: Ads targeted at you based on your profile data.
- Beacon: Widgets that Advertisers can put on their own site, probably linked to special Facebook Pages done by the advertiser … if you as a user do anything with the widget or on the advertiser Facebook page, you quasi make them a friend, endorse them, … . That ends up on your own news feed and your friends news feed :)
- Insight: What kind of people are getting your ads and who are clicking.
Social Ads was clear, so nothing new there. Insight isn’t so far fetched either. I mean just imagine the database they are building up there. How many people that like James Bond clicked on Ads for headache pills. Whatever you want to know, you can find out.
The interesting part is beacon, because that is what they are coining as being word-of-mouth advertising. The interesting thing is that through the widgets on advertiser sites, Facebook will also get more users. Venture Beat puts it very well:
Getting users comfortable with sharing e-commerce transactions sets up a virtuous cycle: (1) E-commerce stores can easily track the financial return of promoting Facebook, based on how many users share their purchase information, and how many sales are generated off clicks from friends reacting to it; and (2) the more financial rewarding Facebook is for e-commerce sites, the more those sites will attempt to promote it, say in promotions in confirmation emais. This, in turn, would lead to more users seeing the promotions, taking actions, and spurring still more activity from their friends (and faster Facebook will grow.) That would be Facebook’s hope.
I am not sure yet what Beacon costs though, or what the Facebook page costs. Paul Kedrosky puts it well though:
Notes from the near Facebook future:
Coca-Cola (Atlanta, Georgia) has requested to add you as a friend. Reply ‘a’ to add, or ‘info’ to get profile.
Oooh, I can’t wait.
The problem in my mind is that this is people driven, and people interact best with people and if the company makes money with it, they want their fair share. But I do get the vicious circle bit.
As a final note, and to get all of this in perspective, check out the Facebook News Network.