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Scott Jagow: Social networking sites have signed up millions of new users this year. But Facebook and MySpace and the like are still trying to figure out how to make money off these people. This week, they could get a step closer. Janet Babin reports from our Innovations Desk at North Carolina Public Radio.
Janet Babin: MySpace is expanding a program that lets advertisers more closely target their pitches to users. They do it by tracking all those juicy details you list on your profile page — favorite songs, movies, that kind of thing. Then, they figure out what commercials you’re most likely to respond to.
Facebook’s expected to announce a similar ad plan today, but it refused to release advance details.
Marketing expert Seth Godin, though, is skeptical. He thinks some people might consider it obtrusive. Godin compares it to AT&T selling ads in the middle of your phone calls.
Seth Godin: “Cause there’s lots and lots of phone calls made everyday, what an opportunity! And they know lots about the people you’re calling and lots about who you are, ’cause you pay your bill. So why not put ads in the middle of the phone calls? Well, the answer’s pretty obvious.
Social networking sites are making the new advertising announcements at a tech conference in New York this week.
I’m Janet Babin for Marketplace.
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