This is a guest post from a former CTO who now does tech consulting for other start-up ventures and was briefed on Facebook’s advertising strategy. The story was edited and checked for accuracy by Betabeat.
If you logged onto Facebook yesterday, perhaps you caught a link at the top of the News Feed that read: “About Ads: Ever wonder how Facebook makes money? Get the details.” The answers provided some context on the news that starting in January, Facebook will start integrating a type of ad, called “sponsored stories,” that display your friends faces next to content they have “liked” in larger-sized ads your News Feed mix. “Facebook makes its money from showing you ads,” the company told consumers yesterday and with the ramp up to its spring 2012 IPO, the social network is getting serious about that endeavor.
In what seemed like an unrelated move, in September, Facebook announced a brand new type of profile called Timeline, where your whole personal history is laid out by month-by-month, all the way back to your birth. At the time, Facebook described it to consumers as a chance to: “Share and highlight your most memorable posts, photos and life events on your timeline. This is where you can tell your story from beginning, to middle, to now.” By the end of this year all 800 million plus Facebook profiles will have been converted to this new interface.
What most users don’t know is that the new features being introduced are all centered around increasing the value of Facebook to advertisers, to the point where Facebook representatives have been selling the idea that Timeline is actually about re-conceptualizing users around their consumer preferences, or as they put it, “brands are now an essential part of people’s identities.” Read More