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The future of the Facebook Ad Machine

by justinjdennis Pupil(November 2007) (rank 174th)
 
 
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If you haven't heard, Mark Zuckerberg of Facebookand William Gates of the lesser known MSFThave not so secretlyrun off together to a quaint B&B somewhere in Napa Valley. Where William has seeminglyseduced the young Zuckerberg with thewhimsicle medoldies of bundled applications and sweet nothings like"Hey big boy, how would you like to meet Warren Buffet?"

Next week the twowill have theircoming outparty in New York, NY, where they will anounce their love child.People magazine will reportedly have the first public portfolio. (Do not let the satire fool you, My comments do not reflect the opinion of Gooruze, Facebook, or Microsoft. This is opinion, solely the production ofa few too manyexpresso beans.)

An advanced ad server is rumored to be in the works for optimizing the Facebook ad diamond mine. But can even Microsoft create an algorithm wise enough to disseminate the fact from the funny.

Facebook has all the necessary fields to target advertising to an exponentially increasing market. With profiles based on location, age, marital status, andinterests of the entire user base of "51 million active (users who have returned to the site in the last 30 days)" (http://www.facebook.com/press/info.php?factsheet). But are these fields quality information?

Target Ads directed at clusters of people based upon profile fields and wall communicationis a great plan. Except for the enitre Facebook population that has a sense of humor.

Our example for today will be my friend Project Pat. Patrick is23, married,has never graduated college anddoes not live in N. Korea. His friends know all of his profile information is a joke, especially his wife who updates his profile photos and from time to time his sexual orientation.

Project Pat

is enjoyin noel's swell......
Updated16hoursago Networks: Stetson Alum
Interested In: Women RelationshipStatus: Single Birthday: October 22, 1955 Hometown: North Korea Political Views: Other

Unfortunately, algorithms just aren't funny. If Facebook plans to cluster Project Pat he would get spam regarding POW and MIA singles events.Hopefully Facebook realizes he is not the only idiot with an account, he may have friends who are just as creative with their profiles. The same concept goes for Networks and Groups.

Some would like to compare the Facebook ad strategy to that of Amazon or iTunes. Both Amazon and iTunes have a massive user base with specific information regarding user transactionsand activity. But this does not hold on as well tothe Facebook platform. Social graph is not consumer. Yes, Facebook users having buying capabilities. Yes, Facebook has information about market segments and audience. No one disagrees with the Facebook capability to reach their audience, but what do they really know about purchase decisions?

Amazon and iTunes have the key purchase data that Facebook lacks. Unless Facebook will only market profileicons likeBreats Cancer Ribbons, Martini Glasses and eCards, they are missing a big piece of the buyer cycle. Look at the Facebook network flyers, they have the ROI of a George Bush picture shop in Tehran.

Will irrelevant spam or sponsored ads affect to way people use Facebook? Can an algorithm that reads user's walls be considered an invasion of privacy? How will theMicrosoft business model affect application developers? Be back for the follow up after the anouncement.

 
 

Any contributed content above is the subjective opinion of that member or external author, and not of Gooruze.com Pty Ltd. View our House Rules for more details.

 
 

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Related keywords: ad, ads, algorithm, facebook, korea, microsoft, spam, zuckerberg

 
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Re: The future of the Facebook Ad Machine

GabrielGoldenberg
Vote:

November 2007

Most people do share their true data on it. And with employers checking profiles, they'd be better off not to screw around too much. Discrimination in hiring is an issue even today, so if you want to kid around about being gay, expect that some employers will think twice about hiring you.

As to the ROI on those ads, are you just repeating what you've read elsewhere or have you advertised yourself? I've advertised (and am advertising) and seeing a good ROI, imho.
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Re: The future of the Facebook Ad Machine

XavierV
4.63 (Excellent) Vote: Interesting Interesting Interesting Interesting Interesting

November 2007

That reminds me of a recent artice on the Allfacebook blog, Should Facebook Allow Aliases?

If irrelevant spam or sponsored ads affect Facebook's users satisfaction because of personal data irrelevance, then Opensocial will chop Myspace (spamspace) pretty badly.
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