Friday, July 25, 2008

In case you didn't realize how Facebook is going to make money....

Dan Farber accurately quotes Om's key point:

Om Malik extrapolates from Facebook Connect that Facebook is building a money machine:

You are essentially telling Facebook's proverbial
brain what topics -- blogs or specific posts -- with which you like to
engage. In other words, you just told the system a little bit about
yourself. Now imagine such information coming from dozens of Facebook
Connect partners.

Each service adds a few more data points about you
inside the Facebook brain, which is quite aware of your activities
inside the Facebook ecosystem. The brain can then crunch all that
information and build a fairly accurate image of who you are, what you
like and what might interest you. With all that information at its
disposal, Facebook can build a fairly large cash register.

The cash register is an advertising platform, a follow on to Beacon,
that leverages the social graph and each member as a potential
marketing engine. With all the data and user permissions, ad targeting
could be more precise.

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