Facebook, the social operating system & the value of ads

by drm on August 25, 2009

facebook ad 1.jpgfacebook ad 2.jpgI’ve been watching the ads cycle through my Facebook pages, wondering just how they are thinking about me as a consumer.

I come away thinking: Duh.

A basic premise for Facebook is that every bit of real estate on the page is valuable. Facebook is my social operating system on the web, and in order to make my experience optimal, every facet of the page they serve up to me should improve my social experience. That’s what keeps me coming back and relying on the service.

Advertising can be a valuable type of content experience if it is relevant and useful to me.

The advertising that Facebook is serving up, which is driving their $500 million of reported revenue this year, isn’t adding to my experience.

Two types of ads appear over and over: promotions for Facebook games and ads from online marketers like LowerMyBills.com and University of Phoenix, who pay low cost-per-click and low cost-per-acquisition rates.

The experience could be so much better. I’m a heavy Facebook user: I post a lot of content and comment on a lot of different posts. Follow my content and you know that I like music, literature; I spend a lot of time with my family; I have young kids; I travel a lot for business; I’m social; I live in Connecticut.

You should be able to drive a lot of very targeted advertising to my page. That would be content I’d look at as valuable, and as additive to my social experience.

That advertising experience isn’t an intrusion on my privacy, as long as I feel secure that I can filter out ads I don’t want and that the information that is being used to target me doesn’t leave Facebook’s control.

Until that kind of valuable advertising content shows up, I’m ignoring part of the right sidebar. That’s a flaw in my social operating system, and a problem that Facebook has to solve.

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  • Travis M.
    Sounds like a job for product like Tacoda which is now part of AOL: http://www.platform-a.com/advertiser-solutions/...
  • Hi Dan, Pretty interesting observation, and it sure seems as though Facebook has yet to make the connections that Amazon, NetFlix and the like have made regarding our online behavior patterns.

    The question that I am grappling with currently is, in our case we have built a nice local community through our blogs and web sites, and what goods or services align with that demographic, whereas thye will not find offense in ads or ad placement. And is this potentially a viable Revenue Stream, I think it is if executed carefully.

    I always revert back to "we need to add targeted value", which is what you are saying too I believe. We have started fooling around with Affiliate Marketing Programs, in that we are embedding the links to say a Budget Truck Rental or a MoveOut.com affiliate ads right into our New Resident Move In Letter which are emailed to our new residents. We are just starting the program, but it seems that as long as you are providing value, it all works.

    Just started reading Chris Andersen's new book Free too, which is a pretty interesting read on this whole subject matter,
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