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Facebook Launching the Google Adsense Killer

Posted by Nick O'Neill on October 29th, 2007 6:27 PM
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Earlier today Lee Lorenzen of Altura Ventures sent me a message referencing a note where he postulates about Facebook’s upcoming ad network. He brought up something that I previously hadn’t thought of: the opening of Facebook’s ad network. Imagine if Facebook, who now has access to over 50 million users’ personal information could target ads based on those profiles anywhere on the web. It’s not far fetched and it is exactly what Facebook will be announcing on November 6th when they announce the SocialAds network.

After speaking with an individual with specific knowledge of how the network is being structured, I was informed that Facebook will be leveraging the cookies installed in users’ browsers after logging into Facebook in order to target them across the web. In the instance that the user doesn’t have one of the Facebook cookies installed, ads similar to those of what Google currently provides will be displayed. Now for those wondering why on earth Microsoft would invest $240 million in Facebook (while Steve Ballmer strategically played down the value of Facebook), this is it.

Thanks to their advertising partnership, Microsoft will now be able to provide targeted ads not only based on demographic data (location, age, gender, etc), but they will also know that the person visiting your site is interested in skiing and guitar. So how much money will Facebook make from this? A ton. Higher CPMs and CPCs will create a new competitive landscape between Google and Facebook. Facebook to Google: we are gunning for you.

 



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53 Comments »

  1. The facebook ads that are displayed now are appallingly targeted. Most of mine are invitations to meet girls, but FB knows, that I am married, so why is it bothering?

    Comment by Jeremy Miles — October 29, 2007 @ 2:21 pm

  2. Interesting, this also explains why they recently changed their login interface to use permanent cookies, allowing multiple browser sessions to remain logged in.

    Comment by Chris Kennedy — October 29, 2007 @ 2:52 pm

  3. This is very interesting, but I see some potential drawbacks, which I post about here:http://webcommunityforum.com/2007/10/facebook-a…..

    Comment by Teresa Valdez Klein — October 29, 2007 @ 3:18 pm

  4. This is very interesting, but I see some potential drawbacks, which I post about here:

    http://webcommunityforum.com/2007/10/facebook-adv...

    Comment by Teresa Valdez Klein — October 29, 2007 @ 4:18 pm

  5. This is massive – great scoop.

    Comment by Andrew — October 29, 2007 @ 5:34 pm

  6. The facebook ads that are displayed now are appallingly targeted. Most of mine are invitations to meet girls, but FB knows, that I am married, so why is it bothering?

    Comment by Jeremy Miles — October 29, 2007 @ 6:21 pm

  7. [...] and Facebook collaboration on advertising that extends outside of Facebook’s walled garden. As Nick O’Neill speculates, this would entail Facebook utilizing cookies to feed up advertisements around the Web based on a [...]

    Pingback by What the Facebook Ad Network Might Look Like — October 29, 2007 @ 7:21 pm

  8. Interesting, this also explains why they recently changed their login interface to use permanent cookies, allowing multiple browser sessions to remain logged in.

    Comment by Chris Kennedy — October 29, 2007 @ 6:52 pm

  9. [...] and Facebook collaboration on advertising that extends outside of Facebook’s walled garden. As Nick O’Neill speculates, this would entail Facebook utilizing cookies to feed up advertisements around the Web based on a [...]

    Pingback by Facebook Ad system? « Fremontman’s Weblog — October 29, 2007 @ 8:01 pm

  10. I fully agree with the fact that they will allow targeting over the Facebook website however gaining access to Facebook cookies (and therefore targeting) on other sites is simply not technically possible.It would be a security nightmare and as such browsers do not allow it.

    Comment by Craig Bovis — October 29, 2007 @ 10:17 pm

  11. This is massive – great scoop.

    Comment by Andrew — October 29, 2007 @ 9:34 pm

  12. I fully agree with the fact that they will allow targeting over the Facebook website however gaining access to Facebook cookies (and therefore targeting) on other sites is simply not technically possible.

    It would be a security nightmare and as such browsers do not allow it.

    Comment by Craig Bovis — October 29, 2007 @ 11:17 pm

  13. Suddenly I see myself deleting my Facebook profile.

    Comment by Nate — October 30, 2007 @ 6:02 am

  14. Goog 2007 rev = ~$17b

    FB 2007 rev = ~$150m – $75m MSFT fear $ = $75m

    Goog 2001 rev = $86m

    Goog cap ex through 2007 = ~$5.84b

    Goog has proprietary software and hardware configs rivaling any commercially avail solution = roughly 10x computing advantage

    Goog = 17k employees year end 2008

    FB = 700 employees year end 2008

    "Facebook Launching the Google Adsense Killer" make fun talk but probability = lower than winning the lottery.

    Wait, $15b private valuation with 300 employees and $75b rev IS winning the lottery.

    Q: can Zuck win the lottery twice? Not likely, but we won't have to worry about it until somewhere around 2012. That is, if you gave FB a management team, 15k employees and $6b to invest wisely and they could do so by tomorrow.

    MSFT = desperate. GOOG = smart to fake interest in FB to make investment more expensive for MSFT.

    Comment by Nate Too — October 30, 2007 @ 7:51 am

  15. Nate…exactly what i was thinking..

    Regarding cookie ads. cookie ads will die faster than pop up ads..how long will it take for browsers (except ie, of course) or third party internet security companies to create cookie blockers ..ad cookie blockers to make it worst. I am sure some anti virus/internet security companies are already deploying one.

    Regarding data on FB, data on fb is very vague

    Another PR stunt to hype Facebook valuation.

    Comment by Chris — October 30, 2007 @ 9:05 am

  16. [...] le cas de Lee Lorenzen, qui a apparemment échangé quelques messages avec Nick O’Neill sur le projet de « Social Ads » du réseau. [...]

    Pingback by Facebook Advertising Network | le blog FaceBook — October 30, 2007 @ 9:20 am

  17. [...] le cas de Lee Lorenzen, qui a apparemment échangé quelques messages avec Nick O’Neill sur le projet de « Social Ads » du réseau. [...]

    Pingback by heaven » Facebook Advertising Network : agence conseil en communication marketing online, web 2.0, buzz et blogs marketing, bouche a oreille, performance search marketing — October 30, 2007 @ 9:25 am

  18. Q: Anyone know of any technological barrier to Goog doing the same cookie trick by categorizing users based on search history?

    History = true intentions vs. self reported demo info on FB is peer driven.

    Comment by Nate Too — October 30, 2007 @ 9:28 am

  19. [...] If you want to read more about the facebook ad-words rumors, check out facebook launching the google adwords killer. [...]

    Pingback by BadPopcorn » Social Adwords vs Regular Adwords — October 30, 2007 @ 9:48 am

  20. Adversiting on the Internet makes sense given the diversity of the platform and the variety of applications available.

    I don't see Facebook doing this. It's as silly as so many closed networks of the past. Google is secure.

    Comment by SV — October 30, 2007 @ 10:09 am

  21. Suddenly I see myself deleting my Facebook profile.

    Comment by Nate — October 30, 2007 @ 10:02 am

  22. Goog 2007 rev = ~$17b
    FB 2007 rev = ~$150m – $75m MSFT fear $ = $75m
    Goog 2001 rev = $86m
    Goog cap ex through 2007 = ~$5.84b
    Goog has proprietary software and hardware configs rivaling any commercially avail solution = roughly 10x computing advantage
    Goog = 17k employees year end 2008
    FB = 700 employees year end 2008

    “Facebook Launching the Google Adsense Killer” make fun talk but probability = lower than winning the lottery.

    Wait, $15b private valuation with 300 employees and $75b rev IS winning the lottery.

    Q: can Zuck win the lottery twice? Not likely, but we won’t have to worry about it until somewhere around 2012. That is, if you gave FB a management team, 15k employees and $6b to invest wisely and they could do so by tomorrow.

    MSFT = desperate. GOOG = smart to fake interest in FB to make investment more expensive for MSFT.

    Comment by Nate Too — October 30, 2007 @ 10:51 am

  23. [...] Lee Lorenzen, of Altura Ventures and Facebook application company Adonomics, cites sources in Microsoft and Facebook as well as other developers during a long essay on the possibility of Facebook using cookies to track users, while AllFacebook confirms the rumor. [...]

    Pingback by VentureBeat » Cookie tracking: How Facebook could be worth $100 billion? « Fremontman’s Weblog — October 30, 2007 @ 11:56 am

  24. [...] internal click-thru rates for Facebook are historically low, under their new advertising system, click-thru rates would be potentially higher given that they are targeted ads on less [...]

    Pingback by Is Facebook Flyers Leaking Data? - The Unofficial Facebook Blog — October 30, 2007 @ 12:35 pm

  25. Nate…exactly what i was thinking..

    Regarding cookie ads. cookie ads will die faster than pop up ads..how long will it take for browsers (except ie, of course) or third party internet security companies to create cookie blockers ..ad cookie blockers to make it worst. I am sure some anti virus/internet security companies are already deploying one.

    Regarding data on FB, data on fb is very vague

    Another PR stunt to hype Facebook valuation.

    Comment by Chris — October 30, 2007 @ 12:05 pm

  26. Q: Anyone know of any technological barrier to Goog doing the same cookie trick by categorizing users based on search history?

    History = true intentions vs. self reported demo info on FB is peer driven.

    Comment by Nate Too — October 30, 2007 @ 12:28 pm

  27. [...] far beyond its website, much like Google’s AdSense. Now others are confirming it. A source told AllFacebook the SocialAds ad network Facebook will announce in New York on November 6 will work by [...]

    Pingback by Facebook SocialAds network « Living in a digital world — October 30, 2007 @ 1:29 pm

  28. [...] is preparing to take on Google with its own social ad network. The announcement of what people are already calling SocialAds is expected next week on November 6 at New York’s ad:tech conference (a day after Google was [...]

    Pingback by Facebook’s Social Ad Network: What We (Think We) Know So Far — October 30, 2007 @ 1:33 pm

  29. Adversiting on the Internet makes sense given the diversity of the platform and the variety of applications available.

    I don’t see Facebook doing this. It’s as silly as so many closed networks of the past. Google is secure.

    Comment by SV — October 30, 2007 @ 1:09 pm

  30. [...] everyone wants to talk about how Facebook is building “a Google killer,” and how the search-advertising giant with the $200-billion market cap is “afraid” of [...]

    Pingback by Facebook and Google: Intent vs. relevance - - mathewingram.com/work — October 30, 2007 @ 3:01 pm

  31. [...] STOP CALLING THINGS “_________ KILLER” It devalues your journalistic integrity. [From Facebook Launching the Google Adsense Killer - The Unofficial Facebook Blog] You can skip to the end and leave a response. Pinging is currently not [...]

    Pingback by blackrimglasses.com » Blog Archive » Facebook Launching the Google Adsense Killer - The Unofficial Facebook Blog — October 30, 2007 @ 3:03 pm

  32. [...] on November 6th. While we now know that Facebook will target users when they are browsing outside of Facebook, we don’t know when the actual network will launch. According to closely tied sources, [...]

    Pingback by Is Facebook in a PR Pickle? - The Unofficial Facebook Blog — October 30, 2007 @ 3:47 pm

  33. [...] das könnte der GoogleAdsense-Killer sein. Vorausgesetzt Facebook wird das weltgrößte SocialNetwork (und ehrlich gesagt [...]

    Pingback by neunetz.com » Ist Facebooks neues Werbemodell der Alptraum aller Datenschützer? — October 30, 2007 @ 4:27 pm

  34. [...] Facebook Launching the Google Adsense Killer – The Unofficial Facebook Blog “Microsoft will now be able to provide targeted ads not only based on demographic data (location, age, gender, etc), but they will also know that the person visiting your site is interested in skiing and guitar.” (tags: Google facebook Microsoft Advertising adsense socialsoftware) Book Mark it-> del.icio.us | Reddit | Slashdot | Digg | [...]

    Pingback by Steven Hatch’s Blog / links for 2007-11-01 — November 1, 2007 @ 1:41 am

  35. [...] Et c’est probablement ce que compte faire Facebook (ce sujet a notamment été abordé ici, là et là). On peut d’ores et déjà avoir une idée des possibilités de ciblage en regardant [...]

    Pingback by WebNotes » Facebook Vs. Google : la guerre sociale — November 1, 2007 @ 6:08 am

  36. [...] to Lee Lorenzen, of Altura Ventures, and AllFacebook, the “Social Ads” advertising service Facebook is supposedly set to launch next week [...]

    Pingback by Ceci est un test » Blog Archive » Facebook: Have Data, Will Travel? Rumored Ad Product for Third-Party Sites — November 1, 2007 @ 9:21 am

  37. [...] Facebook böse Absichten, denn Google will die Profildaten über seine Schnittstellen auslesen und Facebook gar Cookies auf den Rechnern seiner User installieren, die deren gesamten Internetverkehr mitlesen [...]

    Pingback by bwl zwei null » OpenSocial: Alle schreiben darüber, kaum einer weiß was — November 2, 2007 @ 1:54 pm

  38. [...] y a eu beaucoup de spéculations sur le nouveau réseau publicitaire que Facebook lancera Jeudi prochain à la conférence ad:tech de [...]

    Pingback by TechCrunch en français » Un peu plus sur le nouveau réseau publicitaire de Facebook — November 3, 2007 @ 6:37 am

  39. [...] has been endless speculation around the new advertising network that Facebook will be launching next Tuesday at ad:tech in New [...]

    Pingback by Facebook’s New Advertising Network « myblog | brad.belanger — November 3, 2007 @ 8:41 am

  40. [...] Facebook????????ad:tech??????????????????????????????…??????????? [...]

    Pingback by TechCrunch Japanese ????? » Facebook?????????Project Beacon??????????? — November 5, 2007 @ 2:41 pm

  41. [...] fine di ottobre, quest’ idea era trapelata anche sul blog non ufficiale di Facebook, ed era stata subito definita come “the Google Adsense Killer”. In questi giorni la [...]

    Pingback by The Marketer : Lattin Lover — November 7, 2007 @ 7:07 pm

  42. [...] cookie technology that I previously suggested Facebook would eventually use appears to be something that Google is already using. Google is in [...]

    Pingback by Do We Need a Privacy Bill of Rights? - The Unofficial Facebook Blog — November 9, 2007 @ 11:36 am

  43. [...] far beyond its website, much like Google’s AdSense. Now others are confirming it. A source told AllFacebook the SocialAds ad network Facebook will announce in New York on November 6 will work by [...]

    Pingback by Facebook SocialAds ad network confirmed — November 15, 2007 @ 8:37 pm

  44. [...] only solution I see for Facebook is to extend their advertising platform outside of Facebook as I previously suggested that the would soon start to do. Aside from that, I’m not sure what else Facebook can do to [...]

    Pingback by Is Facebook Advertising Effective? - The Unofficial Facebook Blog — November 16, 2007 @ 10:07 am

  45. [...] Allfacebook reported October 29th that Facebook was planning on launching a Google Adsense killer, or competitor. Business Week basically said if a friend books a vacation on a Facebook partner site, the partner site will have the ability to display that friend’s picture as part of an on-line ad to entice other friends to book a vacation. Companies will profit from your face, morons. “Hey look, your drunk ass friend purchased Bill O’Reilly’s Culture Warrior from Amazon, so should you!” [...]

    Pingback by Stop Using Facebook and MySpace or Stop Complaining — November 26, 2007 @ 8:17 am

  46. i think adwords is more powerful than any other ad networks.

    Comment by admanager — March 19, 2008 @ 10:29 am

  47. i think adwords is more powerful than any other ad networks.

    Comment by admanager — March 19, 2008 @ 2:29 pm

  48. Facebook ads are interesting, I tried them.. but much much better and more large audiences and large target is google adwords.

    Comment by William MATAR — August 16, 2008 @ 4:30 am

  49. Facebook ads are interesting, I tried them.. but much much better and more large audiences and large target is google adwords.

    Comment by William MATAR — August 16, 2008 @ 7:30 am

  50. [...] stated their intention to move beyond the site for advertising purposes. Last October I wrote that Facebook had tested a cookie-based system for generating external advertisements. The quickest path to integrating [...]

    Pingback by Facebook’s Big Bet — November 7, 2008 @ 12:39 pm

  51. This post is very interesting and I am going to do this practically by

    applying into my life. Life is not a game. Live your self without

    bluffing and cheating.

    Play fairly..

    keep it up….

    Comment by hanoy87 — July 13, 2009 @ 1:13 am

  52. http://bit.ly/touchgeneration powered by facebook live stream has the answer ……integrate adsense in your website and promote the website easily in facebook………join http://www.bit.ly/linkshare- to promote pay per lead products in the webiste..give adword ads and facebook ads as well…its that easy……….

    Comment by mac — October 22, 2009 @ 2:28 am

  53. [...] watchers have been waiting years for the company to launch a distributed ad network that would compete against Google’s Adsense, [...]

    Pingback by Hold The Music: 4 Things I’d Rather See At Facebook F8 | iBusinessPage.com — September 21, 2011 @ 11:52 pm

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