Facebook Inc. is about to release a new advertising system that lets marketers and ad people target users with ads based on the huge amounts of information people reveal on the site about themselves. Later on, they hope to be able to predict products and services that users would be interested in even before it was mentioned in the social-networking site itself. This move might be similar to what Google Inc. did with AdWords, which lets anyone place ads next to search results by buying keywords online. Perhaps Facebook was inspired by Google’s $USD10 billion revenue last year?
Ads on Facebook would be interspersed with items on the news feed, which is a running list of short updates on a user’s activities. They would also appear on Facebook pages that feature services given by other companies. Soon, this popular site hopes to use algorithms to predict how receptive a person would be to an ad based on data compiled of the user and his/her friends. Only then, ads would meet their target more effectively.