Another Social Site Tests Ad Waters

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Like its social network brethren, Facebook is hoping to find the key to embedding advertising into its site. Next month, the Palo Alto, Calif.-based company will take a new tack: piping marketing offers to users in the form of text and a few graphics.

The ads will appear in members’ News Feed, a feature that shows them what their friends are doing on the site. Chief revenue officer Mike Murphy said the ad, which will appear like other updates but arrive marked as a sponsor message, would be Facebook’s equivalent to buying a homepage ad, typically a site’s most coveted (and expensive) placement.

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