When the model is leveraging users network, advertising and real time updates, this was just waiting to happen. Facebook has apparently started testing real-time ads starting yesterday to around one percent of its users, which comes to roughly six million of its audience base. Have no doubt that this is a powerful shot towards making advertisements more relevant, as it does not just focus an user based on his interest but to his moods and intentions to the precision of that exact moment. Imagine some one who has not entered automobiles or cars as her interest but just shared ” Planning on buying a new car” or “Its time for a new car” on her wall. Voila; she will be served the most targeted car ad and probably even get an invite for a launch or test drive campaign running in her locality .That should give you a feeler on how powerful this will get.
Keywords are a small part of that equation, but Facebook says sometimes keywords aren’t even used. The company said delivering ads based on user conversations is a complex algorithm continuously perfected and changed. The real aim of this test is to figure out if those kinds of ads can be served at split-second speed, as soon as the user makes a statement that is a match for an ad in the system – points out Irina Slutsky
This model ones rolled out will help Facebook demand significantly higher rates and I won’t be surprised if media buyers will be pleased to channelize their budgets into ‘Zucky’s wallet’. Also be prepared to see a huge transformation happening in the entire online advertising spectrum. You can also expect existing models being disrupted with an equally shrill scream for a facebook alternative ( Yeah some one is gonna dare and scream for that ). EMarketer estimates Facebook sold $1.86 billion in ads in 2010, about 60% or $1.12 billion of which was self-serve, meaning advertisers buy inventory directly using Facebook’s targeting tools.