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Tuesday, November 06, 2007

Facebook, MySpace Growing Up With Ads

Congratulations Facebook and MySpace, your dual announcements about hyper-targeted ads is just what publishers and advertisers need. These ad services will let the generic platforms become vertical ad networks because they will parse profiles to target only matching consumers.

Consumers who like skiing, salsa music or rock-climbing will get relevant ads once the social sites are able to fill the pipelines.

Social Ads will show consumers what their pals are buying and include vertical categories. If Facebook is smart it will make its ad platform available to other publishers so that they too can serve targeted ads. Imagine if other media sites know what Facebook categories you fit into so that they can target you whether you are reading news or watching videos somewhere else. This could increase the CPMs net-wide.

MySpace similarly will make its user data available to marketers in addition to mining its own vertical categories.

No matter what they hope, many consumers will never join Facebook or MySpace, but the innovations that they are crafting and popularizing could benefit them elsewhere.

By John Gartner at 10:00 AM | Comments (0)

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