Photo: Time Magazine
Facebook is launching a whole new ad format that, once again, will try to capitalise on the amazing power of the “social graph” as a sales tool.
If your “likes” on Facebook can be interpreted as a commercial action, they will be. And then broadcast to your friends.
That’s the gist of a report by Ad Age that Facebook’s next ad format will be based around Likes.
The way it works is that when you like something on, say, Starbucks‘ Page (or check-in at Starbucks), Starbucks can pay Facebook to broadcast that to your friends more prominently as a “Sponsored Story.”
Interestingly, brands con pay on a cost per action (CPA) basis, which means they’ll basically pay for ads.
The two words that popped in our heads when we saw this are “obvious” and “controversial.”
Obvious because, well, it’s obvious that likes related to commercial action have commercial value, and that Facebook can monetise that value. It’s a simple way for Facebook to make money and we’re sure social media advertisers will love this.
And controversial, because — OMG! Facebook wants to own/make money off your actions on Facebook! The horror!
We think it’s a good idea and we’re excited to see how it pans out.