I remember when Facebook was just a simple way to connect and network with those you know. Times were simple.
Facebook is a whole different ball game nowadays. You can chat, video chat, companies can advertise on the sidebar. It’s wild.
Advertising has been a growing trend over the past couple of years on Facebook. Usually, after you “like” something on the site, advertisers will target you based on your interests. That’s all fine and dandy, especially since you were the one that made the effort to actually like the product, brand or etc.
Just over a month ago, Facebook gave permission to marketers to match users’ email addresses and phone numbers with their own data profiles. Basically, they can now target you on the social media site even though you haven’t “liked” something. It’s starting to feel like the new version of telemarketers.
Now Facebook is working with a data mining firm to show marketers that their advertisements on Facebook are actually working! A report is being made that will show if a person bought something after seeing it on Facebook. This has marketers drooling.
This opportunity that Facebook is providing marketers is giving them reason to put more effort into their ads. Before you know it there will be complex, innovative ads on our Facebook timelines because guess what, apparently that is what we want to see.
In this mashable article, experts say that after the research was completed marketers are getting $3 for their companies for every $1 spent on Facebook. That is unreal.
One concern I see arising from all this is privacy issues. People offer a lot of material about themselves on Facebook and the purpose is not for marketers to use as mining data. It will be interesting to see if there are any repercussions from this new announcement.
Here is a statement from a Facebook representative on the situation:
We are working with Datalogix to help advertisers understand how well their Facebook ads are working. We also do this through our partnerships with companies like Nielsen and comScore and through our own advertising tool. We know that people share a lot of information on Facebook, and we have taken great care to make sure that we measure the effectiveness of Facebook ads without compromising the commitments we have made on privacy. We don’t sell people’s personal information, and individual user data is not shared between Facebook, Datalogix or advertisers.