Facebook launched its own targeted advertising system last Tuesday in an effort to further refine its business model and overcome its lagging behind other websites, such as Myspace, in terms of online advertising revenue. According to Techcrunch, this advertising system consists of three components:
Advertise by identifying target audiences through the demographic data of Facebook users, such as age, gender, social status, work experience, and interests (Social Ads);
Advertisers can place ad tips on their corporate web pages, allowing Facebook users to become product advocates. These users can forward product information to all their friends on Facebook (Beacon);
Summarize overall information for Facebook advertisers, informing them who is being exposed to their ads and who is clicking on these ads (Insight).
The fundamental reason for Facebook's success lies in...