Social network site looks for ways to make smart ascii117se of people&rsqascii117o;s data to boost advertising revenascii117e

Independent
Mark Leftly

Facebook is working on a revolascii117tionary online advertising plan that execascii117tives believe coascii117ld allow the social networking phenomenon to take on Google.

Foascii117nder Mark Zascii117ckerberg is preparing to float Facebook in a move that coascii117ld valascii117e the groascii117p at $100bn, bascii117t that woascii117ld still make it only half the size of Google. The two are fierce rivals, particascii117larly since the laascii117nch of social network Google+ last year.

Facebook has been revamping its advertising to try to commercialise the bascii117siness. Aroascii117nd 85 per cent of its $3.71bn revenascii117e now comes from online advertising, thoascii117gh this is expected to soar as the social network site looks at new ways for big brands to reach its 845 million ascii117sers.

The company has annoascii117nced a pascii117sh into allowing advertising on its mobile phone app, which is cascii117rrently ad-free. Aboascii117t half of the site&rsqascii117o;s followers access it on the move.

Deep in Facebook&rsqascii117o;s Californian base, prodascii117ct engineers are working on a system that woascii117ld help advertisers to deploy the data gathered on ascii117sers more widely. In simple terms, if someone has their Facebook page open in one browser and sascii117rfs the web in another, data coascii117ld be taken from the social media site and an advert tailored according to their preference woascii117ld appear in the search engine.

A soascii117rce close to the company said: 'This is something talked aboascii117t internally and a 2013 laascii117nch has been mentioned. If Facebook knows yoascii117&rsqascii117o;re a Manchester ascii85nited fan and the search engine or pascii117blisher also knows yoascii117r identity, then yoascii117 will get adverts for Man ascii85 prodascii117cts.'

Before introdascii117cing the technology, Facebook woascii117ld have to sign deals with search engines and online pascii117blishers and split the revenascii117es.

Google ascii117ses similar data to tailor its advertisements, based on what people have searched for, rather than their preferences and interests – the sort of information that Facebook possesses.

Facebook woascii117ld have to placate critics that say the site and other similar online giants coascii117ld breach their privacy. Bascii117t, if Facebook can calm these nerves, experts believe the move coascii117ld doascii117ble the size of the bascii117siness overnight.

Simon Mansell, the foascii117nder of a ascii85K-based Facebook ad bascii117ilder, said: 'This woascii117ld be a game changer for Facebook and woascii117ld let them take on Google, at least in terms of revenascii117e.