Facebook Launches New Ad System

Relying on referrals from friends, Facebook users will now be targeted by 60 leading consumer and Internet brands including, Blockbuster, CBS, Chase, The Coca-Cola Company, Microsoft, Sony Pictures Television and Verizon Wireless.Facebook Ads is built on a three-pronged system:

– Businesses can create a page to connect with their target audience
– Businesses create ads that spread virally through “Social Ads”
– New interface gathers data on Facebook activity that will appear to marketers

The ad system launched in unison with 100,000 new Facebook pages that represent the major brands, local businesses, organizations and bands. Much like individual users, these entities can create a page utilizing a myriad of media option, including, of course, an abundance of Facebook apps.

Get more details at CNN’s Techland blog.

What makes the Facebook’s ad system unique is that ads are combined with social actions from your friends – such as a purchase of a product or review of a restaurant – with an advertiser’s message. This means advertisers can target an frighteningly targeted niche audience. These ads can appear
within a user’s News Feed as sponsored content or in the ad space along the left side of the site.

An example of a major corporation putting Facebook to work for them is Blockbuster, thanks to Movie Clique, an application that allows users to search movie titles, create lists of movies they want to see and share movie ratings and reviews while staying updated on new movie releases and promotions. Facebook users who are subscribers to Blockbuster’s online rental service get the added benefit of using Movie Clique to rent movies directly from Blockbuster within the Facebook Web site. Additionally, through Social Ads, Blockbuster will be able to further promote relevant actions from both its application and Beacon to users’ friends.

Check out the ad system for yourself here.