Jonathan Richards
Enter our Snapshots of Summer photography competition
Facebook plans to allow users to advertise products on behalf of companies in a move that will increase significantly the number of corporate messages on the site.
Users of the social networking site will be given the opportunity to alert people they know when, for instance, they buy a product from another website, in which case their friends will receive a message with an advertisement attached.
Facebook users will not be paid for their role as “brand ambassadors” but the adverts will tie into one of the site’s main features – a stream of messages known as a “newsfeed” that constantly updates friends about one another’s activities.
Advertisers will pay for the privilege of having their product referred by one user to another, which will be akin to word-of-mouth marketing. If Facebook users download a film from Sony’s website, they will be given the option of letting their friends know in their messages, which will include a Sony advert.
More than 60 companies, including Coca-Cola, Blockbuster, Microsoft, Sony, Verizon and The New York Times, have signed up to take part in the new advertising platform, which is scheduled to start this week.
Mark Zuckerberg, 23, the chief executive of Facebook, said: “Nothing influences a person more than a recommendation from a trusted friend.” He noted that the traditional model of advertising, using media such as newspapers and television, was changing. Increasingly, he suggested, marketers would be able to relate more directly to consumers via social networks.
Advertisers will be able to set up profiles on Facebook that will enable customers to interact with them, Mr Zuckerberg said. They will also be able to take advantage of the rich trove of personal information that Facebook has gathered about its users, who number more than 50 million, to pinpoint their commercial messages.
Like MySpace, which announced this week that companies would be able to serve “hypertargeted” adverts based on information in a user’s profile, Facebook offers great promise for advertisers. However, privacy advocates have expressed concern, saying that advertisers may gain access to too much information about users’ online behaviour. Facebook has said it will share only information that users choose to make public, and that it will not pass on details that identify individuals.
Analysts predicted that brand activity would increase on Facebook as marketers jostled to get users to sign up to discussion boards and other services. Forrester said in a note: “Expect a lot of noise to be generated. Brands will be working to earn and buy fans to accept them as members.”
Chris Winfield, the president of 10e20, a social media marketing company, said that advertisers would welcome the platform, but that Facebook risked alienating users if their profiles became too cluttered with marketing.
“Part of the reason Facebook has been so popular is because it’s been antiadvertising, anticlutter,” he said. “This risks friends falling out. If someone is constantly telling me how great Coke is and I’m a Pepsi fan, I’m going to lose that connection.”
Some users say that Facebook is right to help companies to serve more relevant adverts but others believe that the site’s reputation as a commercial-free zone is under threat.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
I will have to remove my contact information from my facebook profile. If any company can hire someone just to do the job of finding friends, copying emails and phone numbers and then make their marketingn databases, that's going to be the end of me participating in facebook... and I guess I won't be the only one...
This is unbelievable...
Adriana, Miami, Florida
King should have delivered his 2nd cut yesterday. The BofE is in the pocket of the High St banks who are busy increasing charges and costs all round whilst headline rates have not changed. The UK will be in recession by end of January at which point we may see a cut - too little too late, as always, behind curve and over estimating the risks of inflation. King should go soon and for that matter Brown and Darling too -
Michael, Lincoln, UK