Facebook Program Tailors Ads to Habits of Users, Friends

Nov 07, 06:31 PM

Current Headlines: By Anick Jesdanun

NEW YORK - Facebook has begun transforming itself from an online hangout into an online business district.

Companies can now create their own pages on Facebook for the first time and target ads on Facebook based on what users and their friends buy and do online, under a new program announced Tuesday. Advertisers also will be able to show users their pitches in the guise of a friend's endorsement.

For example, if the friend just booked a vacation on Travelocity, the online travel agency will be able to display the friend's photo to entice the user to buy flights and hotel stays.

The friend would have control over whether to share that information, but the user would have fewer choices over whether to receive it.

As Web companies look to boost advertising revenue by offering to target ads based on users' hobbies, interests and behavior, Facebook's move could change the tone of the site and revive privacy complaints it faced last year.

Key will be how Facebook tells users about the program, something it plans to do shortly.

"Some people may find it creepy," said Deborah Pierce, executive director of the San Francisco-based Privacy Activism. "They are trying to find some ways to monetize this and keep the lights on. "

Originally published by Anick Jesdanun Associated Press .

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