Facebook To Rival Google AdSense? Intelligent Ads Will Know What You Like

By on May 16, 2010

When it comes to online advertising, those in the know seem to be confident that Facebook will soon launch it’s own display advertising network and open it up to third party publishers.

Chris Dixon, co-founder of Hunch.com, has shared his thoughts and some interesting insight into the two different types of online advertising at play.

1. Intent Harvesting

Domain investors will recognize intent harvesting as it is the same concept behind a generic domain name. When someone types in RumCakes.com, for example, then you can be fairly certain they want to buy rum cakes.

Text advertisements found on Google search results are intent harvesting as the user is actively looking to find a specific product. Amazon and Google are the dominant players, so much so that Yahoo closed down it’s publisher network.

Publishers have noticed the steady decline in revenue from AdSense / traditional PPC.

Could innovations in advertising bring revenues back up? Continue reading.

2. Intent Generation

When a website visitor is not actively looking to purchase a product (as when they may be reading a blog post, using an application or being entertained) then the goal of an advertiser is to generate interest and influence the visitor.

Display advertisements like this have a notoriously low click through ratio of around 1% despite demographic segmentation.

Dixon predicts that this type of advertising will increase rapidly in the coming years as brands continually look to increase awareness across the web.

How Facebook & Google Are Revolutionizing Online Ads

Google and Facebook may soon rock the intent generation segment by empowering ads with more advanced data.

The Like Button

Facebook recently launched it’s developer tool set that allows website publishers to place a “Like” button on virtually anything. This social sharing feature generates some website traffic for the publisher.

Facebook will soon be able to paint a beautiful picture of everything their members like.

That is very powerful data to behold. Dixon gives the example of knowing that a user liked Avatar would be useful when looking to advertise Avatar 2.

Even while not actively browsing Facebook.com, users will remain logged in to their account and can be served highly targeted advertising on third-party websites.

Retargeting / Remarketing

Google AdWords advertisers are now actively remarketing display ads to site visitors based on previous activity.

For example, an advertiser could target a user who had previously visited their website by following them as they browse other sites on the Google Content Network.

The diagram below makes it much easier to visualize.

Reports by advertisers have shown very positive results with ad remarketing.

As for Facebook developing it’s own advertising network, we will have to wait and see just what happens. I suspect we won’t have to wait very long.

If you’ve enjoyed this article, test out the like button first-hand!


About Mark Fulton

Mark is the Founder of DotSauce Magazine and a full time web developer, domain investor, SEO and online marketing professional residing in North Carolina, USA. Visit MarkFulton.com for information on freelance website development, SEO and consultation services.
  • Miscellaneous Good Ideas

    Every ads provider now are competing. I thing it is better for us to place our ads in facebook, because we will get good targetted market.

  • http://www.baliemvalley.com/ Juanita

    The war of ads will began…. Who take the benefit?

  • http://optimise-firstfound.co.uk/issue/04/ Andy @ FirstFound

    I think we'll see Facebook and Google rubbing up against each other even more. Ads is just one of the areas we'll see them competing.

  • Sam Ranjan

    Yes … i have used facebook ads before. compare to adwords i like facebook better because you can target certain age group. Overall i still need to use adwords so i can have that yellow sponsored listing on google. ;)

    But, face book is great for promoting media and social sites.

  • http://www.bloggerdomain.net Neeraj Kumar

    Facebook really compete with google when it comes to advertising strategies. Adsense use has hiked in the recent past as well.

  • http://www.bloggerdomain.net Neeraj Kumar

    i meant can't really compete.Sorry for the typo !

  • office file cabinets

    We definitely need to use both Facebook and Google. I haven't used Facebook… This seems revolutionary I'm interested in how this will go. They also have mobile pay per call where people can look at your ad on their phone and they call the company…Google has proven to be the best for me but both are the way to go.

  • http://productreviews4today.com Janice Phillips

    If Google was afraid of Facebook before this, just imagine how terrified they will be if this “Like …” button works out as envisioned?

  • http://www.1stclasscontracting.net rob

    how are we going to benifit from this?

  • http://highperformancehvac.com HVAC Man

    I'm very much interested in how this will go. They also have mobile pay per call where people can look at your ad on their phone and they call the company…

  • http://www.capecodweathervanecompany.com/Cupolas.htm Cupola

    There is room for both, Companies advertise on multiple channels and networks. Just look at TV. Companies dont just pick one network. They advertise on them all.

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    Competition is going to tough ……..let see

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    great post! thanks

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