http://online.wsj.com/article/SB122637098500816351.html
Facebook has been experimenting with a new version of online ads called "engagement ads". These ads would appear on the main screen when you log into your Facebook account and they would require some interaction. If you reply, in typical Facebook fashion, they let all your friends know that you "liked this trailor", or you "added this event to your calendar". It basically spreads the pain of online ads. ARGHHHH. These ads require you to respond in some fashion, you simply cant ignore the ad. They also are a cheaper version of advertising than banner ads. My question is, do we need more internet ads? Will these ads take away from the Facebook experience? I think in the short term "engagement ads" are not a game changer, but I would really like to avoid having to intentionally respond to an ad when I use Facebook.
The good news is that the growth of the online ad market is slowing from 17% in 2008 to 14.5% in 2009. According to the article, advertising on social networking sites is particularly vulnerable as there is currently no right way to measure the effectiveness of these "engagement ads". Also, ad agencies view Facebook as being a narrow audience, limiting the effectiveness of the ad to reach broader audiences.
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I have not experienced the ads you mention on Facebook itself, but I have heard about them. This is similar to the technology Google was developing where they would measure a person's influence and sell that information at a premium to advertisers would be better equipped to hone their message towards the intended audience. Where it goes in the short-term may be down, but I suspect the internet will continue to face pressures to increase advertising to support the growth of companies such as Facebook and Google. It's how they make their money. Lucky for us!
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