One other point...just how big is the online advertising revenue pie? Certainly, the pool is expanding as print revenue shrinks in favor of online ads, but there is a limit. I'm sure these online advertisers have researched the data, but I haven't come across it yet. The pool of advertising dollars is not unlimited.
At first blush, I find the Facebook model somewhat intrusive, so I probably will opt out of allowing my Facebook data to be used in the fashion shown in bold below.
"Two Facebook executives said yesterday that Facebook is indeed planning an ad network. They didn’t give details, and said the timing depends on how the first phase of the Social Ad system works.Presumably, Facebook could offer two
different sorts of ads.First, it could simply use its data about what users put
on their profiles as part of a network that serves ads on other sites. Facebook claims that users have an incentive to tell the truth in their profiles because they are used mainly to communicate with their friends, not strangers. And so
that data about age, location, education, work and interests can be quite reliable for advertisers.Even more interesting, perhaps, Facebook may be able to
append the implicit endorsement of friends to ads on this network. Imaging checking out the forecast on Weather.com, and you see a banner with a picture of your buddy Joe, saying Joe just bought a Canon digital camera from Amazon.com
next to an ad for the latest Canon model. If someone else went to the same site, they might see an ad featuring a product recently endorsed by one of his or her friends."
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