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New advertising strategy is a big gamble for Facebook
Posted by MySpace2Max   •   Monday, 2007-November-12
NEW YORK--When Facebook founder Mark Zuckerberg spoke to a room full of reporters shortly after announcing the company's new Facebook Ads initiative, it became clear that this move is a risky one. Facebook Ads, with its focus on "trusted referrals," is heavily rooted in viral distribution tactics. And it's well-known by now that while a viral phenomenon can reach soaring levels of popularity, it can also become synonymous with in-your-face annoyance.

Zuckerberg was insistent that Facebook users will appreciate the fact that they'll be seeing advertisements that cater specifically to their interests and that showcase recommendations from their friends. "It seems like people prefer targeted ads. They just perform way better," he said. "The point that we're trying to make today is that it's way more organic and natural."

But there are questions--some big ones. One reporter voiced skepticism over the fact that because they're advertisements, the "trusted referrals" will only extend to positive reviews, whereas a major component of real-life recommendations among friends is what not to buy.

Perhaps more troubling is the fact that if you sign up as a "fan" of an advertiser group on Facebook--a brand of sneakers, for example--your name will automatically run alongside "Social Ads" for that brand in your friends' profiles, and Zuckerberg said that there's not yet a way to opt out of that.

"This is the first iteration of this," the Facebook founder assured the press as he explained that since Facebook Ads is new, the company could potentially change that no-opt-out policy for being a "fan" of a group. "When we announce a product, we want to also launch it (but) I wouldn't say that what we're launching today is the final version."

He promised that the company would act quickly if any concerns arose.

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