Facebook to Roll Out External Advertising Network Based on User Data

By Rob Scott
November 29, 2012

According to recent changes to Facebook’s privacy and governance policies, the social network could soon leverage user data — namely likes and dislikes — to build an external advertising network.
This means Facebook would generate revenue by showing relevant advertisements on sites other than Facebook, similar to how Google makes billions of dollars every year.
“This is the first real confirmation that the company is going to roll out an advertising network that extends beyond just its own walled garden, and it could turn out to be one of the biggest factors in the success or failure of Facebook’s revenue-growth strategy,” reports GigaOM.
“Everything you do and say on Facebook can be used to serve you ads,” explained Chief Privacy Officer Erin Egan to Forbes back in May. “Our policy says that we can advertise services to you off of Facebook based on data we have on Facebook.”
An external advertising network could double Facebook’s revenues, bringing the company to $10 billion a year, suggests the article.
Facebook could begin its advertising endeavors on Instagram. After implementing the system on its own entities, it could then expand to external sites.
“Access to information about the browsing and liking habits of a billion people isn’t something that comes along every day,” notes the article, underscoring the potential of a Facebook-driven advertising entity.

No Comments Yet