Behavioral Targeting Gets Social

Social-networking Web site Facebook Inc. is quietly working on a new advertising system that would let marketers target users with ads based on the massive amounts of information people reveal on the site about themselves.

Eventually, it hopes to refine the system to allow it to predict what products and services users might be interested in even before they have specifically mentioned an area. Full Story>>

Thoughts// A nice piece last week in the WSJ about how Facebook is building an algorithm that will allow advertisers the ability to target advertising to users based on their interests and personal connections. Essentially what this means is that all the little tidbits about yourself on your profile and information mined from applications on your profile (e.g. TripAdvisor’s “Where I’ve Been” ap) will now be used to show you more relevant ads.

With more than 1 million people flocking to Facebook each week, the media drumbeat around the site has certainly been deafening (can you say IPO?). Besides the WJS piece on its targeting service Mark Zuckerberg (founder of Facebook) is featured on the cover of Newsweek in an article about its relevance as its moves beyond the borders of college. All this probably leaves you wondering what’s going on with MySpace. MySpace is clearly the category leader in terms of sheer users (70 million at last count) and already offers a somewhat limited behavioral targeting platform. However, as pointed out earlier in this report, it just maybe that these two spaces may not be competitors after all.

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