Facebook wants to expand its advertising beyond social games, possibly adding a revenue stream to other categories on the site like music and video.
That’s what Dan Rose, Facebook’s vice president of partnerships and platform marketing, told an audience at the Digital Life Design conference in Munich, according to Reuters. He said that the company wants to leverage its success in selling ads related to social gaming into other categories. Like the news wire quoted from his presentation:
For a company like Zynga, Facebook is absolutely the most efficient advertising platform in the world. Games tend to be a leading indicator. As more and more categories become social, certainly that’s an opportunity for us from an advertising perspective. We’re in the middle of a transformation. We’re moving from the information web to the social web. We’re moving from the wisdom of crowds to the wisdom of friends.
Presumably his speech in Munich had the objective of starting a dialogue on how to put advertising into categories beyond social games. He didn’t come right out and say that Facebook might try to monetize suggested content, but that would be “wisdom of friends” if we assume that display ads are the “wisdom of crowds.” Perhaps the recommendations from friends would include an incentive program, for instance, offering a freebie to someone who recommends something to a friend.
How might Facebook sell advertising within the music and video categories? Is there a way for the site to monetize content suggestions or sharing?