Could This Be The First Appearance Of a Facebook Ad Network

[engine]

Very interesting, and could be a real winner, if implemented correctly.
Could This Be The First Appearance Of a Facebook Ad Network

Zynga’s off-Facebook games platform Zynga.com now displays Facebook ads and Sponsored Stories, as part of what could be the beginnings of a Facebook ad network across the web.

According to the Facebook Help Center, “When you connect with Facebook on Zynga.com, you’ll see personalized ads and sponsored stories. The Facebook ads you see on Zynga are the same ads you see on Facebook.com.”

Those ads appear in the sidebar, which is where we’ve previously seen Zynga serve ads via Google AdSense.
[insidefacebook.com...]

UPDATED
The quoted story above was updated later with:

Facebook provided the following statement, “We have had a close relationship with Zynga for a number of years and we think we can deliver value to Zynga and to the people playing their games by showing the same ads that they see on Facebook. We will not be showing ads on other sites at this time.”

[edited by: Brett_Tabke at 12:52 pm (utc) on Jun 23, 2012]
[edit reason] updated [/edit]

[Chicago]

Engine, I think you are right on here. The fact of the matter is that FB has the personalized profiles that can target users around the web in what may arguably be a more effective experience than that of contextual or other display networks, simply based upon deeper data.

I imagine FB is going to push the network model forward, as moving off-site is a major hedge to poor ad performance on-site and increasing ad revenue growth and compete for ad market share as all the other majors do.

[Panthro]

All hail FB Adsense!

[netmeg]

Can't wait.

[Leosghost]

Hardly a "network" if it is only running on Zynga..given that Zynga was no doubt a Google premium partner ( with the traffic required to be one ), this so far has no more signs of being "open to all" than does Yahoo's premium partner network..or Google's premium partners..

My definition of "network" has more than facebook itself and one other site ( or a handful of mega traffic sites ) involved ..of course some peoples wishful thinking may lead them to redefine "network"..

[netmeg]

It is, perhaps, the first step.

[Sgt_Kickaxe]

FaceSense!

Google's 33% adsense earnings cut and billions in quarterly profits suggest there is some wiggle room for a serious competitor.

I doubt Facebook is ready to tackle that project just yet but would be surprised if they don't move towards it eventually.

[joeventura]

If it competes with adsense COUNT ME IN!

[Digmen1]

Even if Facebook doubles or triples its advertising income, it is no where near enough to run its operations on.

I wish their bid rates were lower so that I could run more ads, because they do work.

I also do not like the fact that they cut down the number of characters in their ads.

[Brett_Tabke]

I think this is the story of the year. Bigger than the Facebook IPO. I think it is totally rocks.

All hail competition!

ReadWriteWeb:
[readwriteweb.com...]

The new ads on Zynga.com don't represent the stealth launch of a Facebook Ad Network, at least according to official sources. In fact, as Josh Constine at TechCrunch reports, this agreement was laid out in Facebook's S-1 documents before it went public, so it should come as no surprise. It's a revenue-sharing agreement between Facebook and Zynga, its longtime partner in all manner of time-wasting games, and they both insist that's all it is.

Facebook's PR statement is this:
"We have had a close relationship with Zynga for a number of years and we think we can deliver value to Zynga and to the people playing their games by showing the same ads that they see on Facebook. We will not be showing ads on other sites at this time." (emphasis added)

It may not be here "at this time," but Facebook's ability to track its logged-in users around the Web is well known. If, as industry watchers have long expected, Facebook launches an ad network for other sites, it would quickly upset the balance of power on the ad-supported Web.

[dataguy]

I think this is the story of the year.

It certainly is the story of the year as far as I'm concerned! Let's get this party started.

[Leosghost]

Unless you work for Zynga or Facebook..why is this any reason to "party" or get excited..
This..

It may not be here "at this time," but Facebook's ability to track its logged-in users around the Web is well known. If, as industry watchers have long expected, Facebook launches an ad network for other sites, it would quickly upset the balance of power on the ad-supported Web.

quote did not come from facebook ..it is pure speculation / wishful thinking on the part of others..

You will also note that in oder to see any ads from facebook on zynga, one must be simultaneously "logged in" to ones facebook account..Mark is not letting the "marks" climb outside of the walled garden here..he is merely extending the wall around another partner mega site where those who are already receiving ads on facebook spend a very substantial slice of the rest of their online time ..

To me it reads very much like he is not happy with the result of showing ads on facebook only ( nor are major advertisers such as GM ) and has realised that many of his "eyeballs" drift to particular games maker with whom he has had a long time association..but..showing ads to people who are playing games is no more relevant to them than showing ads to them when they are looking at pictures or their friends or family or catching up on what their school friends are doing..

This looks like a ploy to attempt to justify a prt of the IPO price in the face of hard questions for which he and his bankers and VCs don't have any realistic answers..

The only people who are going to get "targeted" ads are those who have already given all their data to facebook and are logged in..so expect the ROI to be about the same as already was the case for advertising on facebook ( to most advertisers that ROI was crap compared with ads on Google )..and adsense publishers who somehow think that facebook is going to start an alternative platform to adsense for small and medium "publishers" need to put down the bong..

The delivery mechanism for these facebook ads is not contextual..it is totally personalised and the visitor needs to be logged in at the same time to facebook..

How does anyone think that could result in ads served which are relevant to any sites subject matter ?

Those served on facebook and zynga are not page relevant but personalised to the visitor..they are "stalker ads"..

Since Google went so heavily to "stalker ads", the complaining voices about a falling publisher revenues here have risen to a roar..

Maybe in the distant future facebook will invite small and medium webmasters to add a piece of code to their webpages, ( personally I can't see it happening within the next 12 months minimum, if ever ) and facebook would feed ads to those facebook visitors who were "logged in to facebook" at the same time..

In which case the revenues of those websites would be expected to be in line with what they make from showing Google's personalised ads now ..

And does anyone really believe that Google and Facebook would not say ( to small and medium publishers ) "it is either their ads or our ads ..you can't show both on the same page*" or possibly even not on the same site..and not to the same visitor..* as do the current terms of Google, Bing and Yahoo..

Those who tell webmasters and or advertisers that they can help you to make money with Google and or facebook, will hail this as "a new dawn"..and then try to tell you how they can help you to do this, or profit from this "new move" ..for a fee..

Apart from for those already pitching that kind of business, this places no new seats at the table..and makes no more room than before for anyone else, other than the mega sites, and those already intimately intertwined with facebook..Zynga being the perfect example of the latter..

[ByronM]

Google is desperately trying to use +1 to do what Facebook can do, while facebook is desperately trying to build their marketing platform to do what Google can easily do with Adsense.

Facebook knows its success isn't wrapping the web inside its platform, but extending its platform to the web and one way to have happy webmasters is to help them monitize their traffic.

I can't wait to see if FB does take this more public as i would love them to punch Adsense in the gut, Google desperately needs a viable competitor in this space.

[engine]

"We will not be showing ads on other sites at this time."

That's closer to suggesting it's on the list than a flat denial.

FB have the muscle to get behind this concept, but do they have the know-how. If they don't, they needd to seriously consider it. I shall be looking out for FB hires in that area.

[netmeg]

How does anyone think that could result in ads served which are relevant to any sites subject matter ?

It won't. That's the old model. The new model is interest based. If FB (or Google for that matter) served ads based only on subject matter, I'd be out of business. Ads targeted to audience, not targeted to sites, that's where we're all heading. And Facebook probly has a better shot at that than Google, at this point.

[londrum]

facebook can follow people all around the web, even if they dont visit facebook. loads of sites have facebook buttons and comment boxes on. im sure they can be used to track people, just as im sure google tracks you through analytics and the other stuff they've got installed on sites. they still deliver targeted ads without you having to be signed-in to google.

[Leosghost]

@netmeg..if the new model is entirely interest based..
two things ..
That model is running foul of legislation in the EU and the USA..it will be legislated against in many areas perhaps even the USA..the "no track" in browsers will also seriously handicap it ..

plus if facebook serve only interest based ads ..they don't need either you nor I nor any of us to produce content..they can use the Ehow human spun scraped model and cut out the independent webmaster entirely..which is the way I think that they and also Google will head..

@londrum..facebook's tracking via the buttons and comments etc is waaaaay less sophisticated and accurate than Google's..you cannot compare them at all..plus see my reply to netmeg..facebook will not be able to extend their tracking to the level that Google have..

Which is why they are extending the walled garden to zynga..but you have to be signed in to facebook at the same time...the ad delivery method is not operative without that..you need to look at how Google track and how facebook track..the methods are not at all the same ..you give facebook a detailed profile ..when you sign up, and from there they watch what you do inside their walled garden..
with Google ..they track you and build a profile..

Different tech..chalk and cheese..

[netmeg]

Think so? We'll see. I don't pretend to be up on EU legislation, but I bet you a box of doughnuts it'll fly just fine in the US of A.

[jdizm]

FB are gonna be rolling out a lot of new stuff, they need to do something to please the shareholders now...

I wouldn't be surprised to see FB ads on public transport screens at some point in the future, using their newly acquired facial recognition software. Personalised ads while waiting at the bar for a drink?

[Clarence]

I can't wait!

Can you imagine the Click through rate on an ad targeted by Facebook Data, and the content of your website at the same time! WOW. What if Facebook also tracked clicks, so the same ad wouldn't show after it's been click or determine which ad would be most clicked per user, per site WOW. Since the user must have a Facebook account, the number of invalid clicks low. And imagine being able to get paid by impression also.

To cool! I wish Facebook would accept donation because i would donate $1,000's to get them to start this!

All we need is a single 300x250 with 3 ads. That's all. Come one Facebook Release this in Beta, I will give you free adspace!

[Clarence]

makes me want to create a website called WeWantFacebookContentAds dot com, and try to get Webmasters to sign a petition to submit to Facebook.