Facebook is now at the peak of its popularity and its substantial user base looks more and more appealing to advertisers. The social networking site is reported to be working on a new ad targeting system, much similar to the one employed by Google's AdWords.
The new system should be in place sometimes this fall.
According to Wall Street Journal, Facebook's new system will be based on preferences users choose to disclose online, thus significantly widening the possibilities of a better targeting. Apparently, it won't be based only on age, gender and location; plans include the use of favorite activities, favorite music and so on.
Unlike other ad systems, Facebook doesn't focus on placing ads in the old-fashion way. Instead, it will mix them within the "news feed," the list of updates detailing the activities of various friends present in a user's list.
Currently, Facebook's PR strategy had “No comment” written all over it. The site's representatives stated that nothing would be disclosed for the time being.
Everyone's guess is that time will tell what is Facebook actually up to. However, until then, there is one more question that needs an answer: how are things between the social networking site and the Redmond giant?
As you know, Facebook and Microsoft have formed a "strategic alliance" and the latter provides the advertising platform for the social networking site. Furthermore, this partnership is valid until 2011. On the other hand, the WSJ report indicates that Facebook's new advertising system is being developed in-house with no help from third-parties. Will Microsoft be cut off from the deal?
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