Los Angeles — Facebook the world’s most popular social media networking site, after seven years of concentrating on the cool the free ride is over, as Facebook is finally ready to cash in — is now gearing up to unveil a new wave of highly targeted adverts using data uploaded onto its users’ pages.
Facebook is home to unprecedented volumes of information on its users, including their “likes” and detailed demographic data. Today, with more than 600 million people have Facebook accounts, the social networking giant is now gearing up to mine its immense database to match users to advertisers like never before, reports the LA Times.
Furthermore, an average user typically spends seven hours a month posting photos, chatting with friends, swapping news links and sending birthday greetings to classmates.
Interestingly, now the Palo Alto, California-based company is seeking to reap the benefits and cash in on this mother lode of personal information by helping advertisers pinpoint exactly whom they want to reach. The site has been testing software that allows ads to read in real-time information uploaded onto status updates and wall posts.
This is no idle boast. The social medial giant is now tracking this activity, shooting online ads to users based on their demographics, interests, even what they say to friends on the site — sometimes within minutes of them typing a key word or phrase. “Facebook does not have to guess who its users are or what they like. Facebook knows, because members volunteer this information freely — and frequently — in their profiles, status updates, wall posts, messages and ‘likes.'”
For instance, women who have altered their relationship status to “engaged” on their Facebook profiles should not be surprised to see ads from local wedding planners and caterers pop up when they log in. Hedgehog lovers who type that word in a post might see an ad for a plush toy version of the spiny critters from Squishable.com. Middle-aged men who list motorcycling as one of their hobbies could get pitches from Victory Motorcycles. If a Facebook user becomes a fan of 1-800-FLOWERS, her friends might receive ads telling them that she likes the floral delivery service.
According to experts, this could make Facebook one of the most dominating marketing tools ever created, with ads even more tailored to its users than those featured on rival Google.
Additionally, Facebook’s ad revenue reportedly doubled last year to $2 billion, and insiders say it should double again in 2011. “If you take a look at the history of media, ad dollars go where the eyeballs are,” said one analyst.
Nevertheless, Facebook has been valued at a staggering $50bn after Goldman placed a number of its privately held shares. It is seen as the most powerful of a crop of unlisted technology firms taking Silicon Valley by storm.
Facebook’s last attempt at cashing in with ads based on user information in 2007, with Beacon, ended with a lawsuit by users and the service being pulled after less than two years.
“Facebook users should be cautious about whether the social media networking giant ultimately has their best interests at heart,” said the executive director of an online rights group.
Surprisingly, the unending saga over who really owns Facebook has taken yet another twist, with convicted felon Paul Ceglia amending his claim that he should rightfully own half of the company.
Ceglia, who last year filed a lawsuit claiming he has emails proving Zuckerberg owes him 50 per cent of the business. A lawyer for Facebook dismissed the claim as “ridiculous”.