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HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
Just An Online Minute... So The Commercial Begins: Facebook Looks To Members As Brand Advocates
by Wendy Davis, Wednesday, November 7, 2007, 2:01 PM

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As industry executives convened in Washington, D.C. last week to debate whether behavioral targeting techniques violate privacy, Facebook was prepping a new initiative that makes anxieties about serving people ads based on their surfing history appear almost quaint.

Facebook Tuesday unveiled a sweeping new program that allows marketers to conscript members to serve as brand advocates.

Under the program, members can sign up as fans of particular brands. Those brands can then send ads to members' Facebook friends that include the fans' name and photo.

While this scheme doesn't necessarily implicate privacy concerns, it's troubling for other reasons. First, people can sign up as "fans," but that doesn't necessarily mean they actually like the brand. People identify themselves as supporters of all sorts of things online for a variety of reasons -- including simple curiosity about what perks and/or access doing so would bring.

Secondly, it's not clear that members who become brand fans realize that they are going to be harnessed as brand advocates. Yes, consumers are walking ads for many products; when people wear a Nike T-shirt or walk down the street drinking an Evian, they're arguably advertising for those brands. But those people certainly realize that they're walking around with branded logos and the like. On Facebook, they may or may not appreciate that signing up as a fan means their likeness is going to be used in ads.

Another part of Faceboook's plan, the Beacon program, is far more troubling from a privacy point of view. That initiative involves informing people's friends of purchases they've made online. In other words, if one Facebook member buys a DVD of, say, season two of "The Office," and allows that information to be shared with others, the member's Facebook friends will be notified that one of their contacts has purchased that DVD.

Users will be able to opt out of the service, but privacy concerns remain. Simply explaining this type of offering to people who aren't familiar with Web advertising might prove difficult, let alone explaining the opt-out procedure. What's more, even tech-savvy users mistakenly check the wrong boxes online, inadvertently opting in instead of out and vice versa. Additionally, as GigaOm points out, even if people opt out of having their purchase information shared with other members, Facebook might still harness that information for other marketing purposes.

Apart from privacy concerns, it's not clear that Facebook users will tolerate this degree of commercialization. It's one thing for people to talk up a movie, book or particular store to each other. But simply spreading the fact that users have, say, purchased a book, without including whether those people liked it, or even read it, is all but meaningless.

8 comments on "Just An Online Minute... So The Commercial Begins: Facebook Looks To Members As Brand Advocates "

  1. Gerard McLean from Rivershark, Inc.
    commented on: November 08, 2007 at 4:00 PM
    Mr. Roth, kids graduate and become employees. It seems I am constantly finding myself aghast at the number of "young kid employees" who will interrupt a conversation I am having with him/her to check a vibrating phone and then continue on as if the interruption never happened. Or, worse yet, text a reply as they are talking to me. To them, there is nothing wrong with this.

    So, to say that Mark should "stick to his niche" as if to say "stay on college campus" is entirely erroneous thinking. The "kids" are bringing the campus to work with them and soon there will be more of them than us. So, in a sense, Mark Z. IS sticking to his niche.

  2. Marc Roth from Interactive Advertising Systems INC
    commented on: November 08, 2007 at 2:29 AM
    I love what Mark Zuckerberg has been able to accomplish with Facebook actually. On a campus I agree 100% with Mr. McLean above. I'm only 3 years off of UNLV's campus and I'd say I talked to my friends on Facebook more frequently than I did in person. Mind you I was a Comp Sci major so I was often in class or a lab while I was doing it.

    I'd have to say that Mark might want to stick to his niche though. That is assuming that I'm not the odd one out, but I haven't used facebook 4 times in the last three years. Though I do still communicate with the same people on MySpace and via business e-mail.

    As for the belief that it's meaningless to point out to people that one person bought something and expect others to buy it. We're still talking about school kids here. Remember the lunch room? It will work and in a big way. People who are flunking out of high school or college because they don't even read will buy a book if the right person bought it.

    School is one giant bandwagon.

  3. Carolyn Grantham from DFCI
    commented on: November 07, 2007 at 4:34 PM
    "On Facebook, they may or may not appreciate that signing up as a fan means their likeness is going to be used in ads."

    I hate to be all "the-kids-these-days," but I'm not sure this is going to be an issue for many young, ego-first Facebook users. If they're quite happy to join groups such as "30 Reasons Girls Should Call It a Night"--where they can submit photos of themselves drunk, passed out and oblivious--then the prospect of appearing in an ad (look! I'm famous!) may be extremely attractive.

    And I suspect that's what Facebook hopes, too.

  4. Rick Simmons from Dinkum Interactive
    commented on: November 07, 2007 at 4:23 PM
    Huge mistake from FaceBook - they should sell the company now - it will do nothing but decrease in value from here if these are the kinds of initiatives they propose to monetize their operations. Turn it over to Google and in a few months they would have it turned around.

    LinkedIn and other like services have got to be liking this. Social media will become another leading marketing opportunity but obviously the kinks are still be worked out.

    FaceBook - did you do your homework first - the one in charge of this idea shold be fired immediately - will be interesting to see how long before they backpedal on this one.

    They are starting to sound like another company who has trouble determining direction perhaps we could call them FaceHoo.

  5. Paula Lynn from Who Else Unlimited; hollywood5459@verizon.net
    commented on: November 07, 2007 at 4:03 PM
    1. If you want to know what your friends like or buy, CALL THEM AND ASK THEM !

    2. What fools there be when they allow themselves to be used in such a way. Freedom in not free and those who forget this and allow themselves to be put in such positions are prostituting themselves. Get off the social networks and talk to your friends.

  6. Gerard McLean from Rivershark, Inc.
    commented on: November 07, 2007 at 3:56 PM
    I think Facebook users will not care what companies know about them or their friends know about them. Most of the Facebook population is used to living in a fishbowl and can easily tune out the barrage of sensory data that is thrown their way all day long. if you don't believe me, go visit a college campus and count the number of students having real conversations with other students as they walk... then count the number of students on their cell phones, texting or plugged into their iPods, totally oblivious to the physical world around them. The virtual world wins

    The Facebook population lives in bubbles and can only be contacted when THEY choose and can easily disappear when the noise grows too loud. I think the only people who will have angst over the new Facebook advertising scheme are the advertisers, who will find that no matter what they do, they will not be able to crack the "cell-phone, iPod, texting" bubble shell this population cocoons themselves in.

  7. Mike Wacht from Global-5, Inc.
    commented on: November 07, 2007 at 3:44 PM
    Another possibility that advertisers may not like in all this is FaceBook users who have something to market themselves.

    If I wanted to push a particular political, social or other cause, I would upload an image of that cause instead of a picture, sign up as a "fan" of as many products as I could, then let the advertisers send out my picture message along with their message.

    Wouldn't brands love to find out they've been carrying my political or religious message out to all my FaceBook friends.

    Couldn't you see a nice GOP ad accompanied by a "fan's" donkey logo photo?

  8. Kathryn Campbell from What's Next Interactive Inc
    commented on: November 07, 2007 at 3:35 PM
    The Devil will be in the details. As you point out, user control over opting in or out -- and being able to change that decision after the fact, in case of a mistake or change of heart -- will be key. Facebook fumbled user feeds in their first incarnation, but today they are appreciated as a great way to stay in touch. I have no problem with the new ad platofrm as long as the user stays informed and in control. I'd love to know what books and movies my friends are buying, wouldn't you?

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