Facebook buy sparks ad speculation

Share this article:

The $240 million purchase, by Microsoft, of a 1.6% equity stake in Facebook, has drawn attention to the social media giant's advertising intentions. The technology company is now the exclusive third-party ad platform partner for the Web site.

Facebook is looking to use this information for targeted advertising both on and off the site, according to ad industry executives.

While Facebook will not discuss the details of this move, industry executives expect Facebook to unveil its plan at its November 6 meeting that will be led by Facebook founder Mark Zuckerberg and the Facebook executive team. On September 24, Facebook trademarked the term SocialAds.

Not everyone in the industry thinks a Facebook ad offering will be so novel.

"I don't think that it's anything new in general," said Joe Apprendi, CEO at behavioral targeting firm Collective Media. "Obviously Facebook has a huge database wand with its registration data and profile data, but this is nothing that Yahoo or MSN hasn't done before." He added that the potential lies in Facebook mixing this information with other online information.

Facebook users create profiles that include information about their age, location, job, school and taste in music and movies, among other things.

Share this article:
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

News Byte: Google Adds Upgrades to AdWords

News Byte: Google Adds Upgrades to AdWords

Rolling out over the next few months will be tools for mobile app engagement, automated bidding, and A/B testing.

This Earth Day, SodaStream Takes People to 'The Secret Continent'

This Earth Day, SodaStream Takes People to 'The ...

The promotional premise is garbage, of course—some 3.5 million tons of it floating in the Pacific, unbeknownst to millions of drinkers of bottled pop.

News Byte: CX Scores to Take Their Place Beside Price Listings

News Byte: CX Scores to Take Their Place ...

E-commerce aggregator PriceGrabber will begin offsetting price info with service expectations.