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Self-Serve Ads, Goods Work Well for Facebook

After missteps, Zuckerberg and co. have found some winning formulas

By Nick McMaster,  Newser Staff

Posted Sep 16, 2009 5:37 PM CDT

(Newser) – Reports on Facebook’s newly announced profitability have focused on a fixed deal with Microsoft that generates a large chunk of their income. But the site’s homegrown revenue sources—self-serve advertising and virtual gifts—shouldn’t be discounted, writes Bobbie Johnson for the Guardian. The personal information on Facebook pages allows for marketers to target users with greater precision than search advertising.

And Facebook’s community can play both roles in the advertising equation—individuals can also buy ads on the site to direct you to profiles and groups for their products or causes. Lastly, don’t count out virtual gifts, as they can support habit forming online games. After all Johnson writes, “nobody ever thought ringtones could be so profitable.”

Facebook founder and CEO Mark Zuckerberg poses at Facebook headquarters in Palo Alto, Calif., Feb. 5, 2007.
Facebook founder and CEO Mark Zuckerberg poses at Facebook headquarters in Palo Alto, Calif., Feb. 5, 2007.   (AP Photo/Paul Sakuma)
The Facebook logo is displayed at a news conference in New York in this November 6, 2007 file photo.
The Facebook logo is displayed at a news conference in New York in this November 6, 2007 file photo.   (AP Photo/Craig Ruttle, file)
In this Jan. 30, 2009 file photo, Facebook founder and CEO Mark Zuckerberg participates in a plenary session at the Annual Meeting of the World Economic Forum, WEF, in Davos, Switzerland.
In this Jan. 30, 2009 file photo, Facebook founder and CEO Mark Zuckerberg participates in a plenary session at the Annual Meeting of the World Economic Forum, WEF, in Davos, Switzerland.   (AP Photo/KEYSTONE, Peter Klaunzer)
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