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Facebook charges brands for your brand interactions

January 25, 2011

Facebook

The full merging of brands into the social media space is now going to happen with Facebook’s new initiative around sponsored stories.

This means that your interactions with brands on the giant social network get turned into ads which get shared on the network.

This development marks the point when brands become fully integrated into the status stream.

Obviously, it’s all about the brand and if the brand is credible enough to be shared with your network. It’s interesting to see that Levi’s, Bud and a handful of non-profits are the first to sign-on, which makes complete sense.

Facebook has four ways to monetize brand interactions and turn them into ads.

1. “Like
stories” involve when users choose to “like” a brand
2. “Page post
stories” entail users’ wall posts
3. “App stories” include messages
between app users, such as video game players
4. “Check-in stories”
consist of posts via the geo-social platform Facebook Places

It will be interesting to see how engaged brands are in the idea of simply broadcasting their fans and consumer actions to a wider community.

In the end, success depends on exactly who jumps on board from an advertiser perspective and how prolific these ads become. If it starts to clutter people’s status updates, it could soon loose favor, but if it’s kept under control it won’t attract the negative attention of users.

One challenge here is that idea seems very limiting and literal- the simple broadcasting of actions doesn’t make an interesting ad.

It will be seen, but I question how engaging it is and wait to see how Facebook plans to change that or allow agencies to come up with alternative options.

Posted by Ed Cotton

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