Facebook testing targeted ads in News Feed

12:06 PM, Mar 27, 2013   |    comments
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(USA Today) -- Social network Facebook is testing targeted advertisements on user News Feeds as part of a broader plan to rake in additional revenue.

The ads are part of Facebook Exchange, a system businesses can use to deliver ads to users based on their browsing interests.

The Exchange ads will look very similar to content displayed on the News Feed from friends. Typically, users would see ads in a Sponsored section to the right of the page, in between the News Feed and Chat.

Facebook says the goal is to deliver ads that are more relevant to users. "Allowing advertisers to reach people in News Feed is important because people spend more time in News Feed than any other part of Facebook," reads a statement by Facebook.

The experiment is part of a "small alpha test," so it's not clear how many users will see these ads or when Facebook plans to roll this out to all its users.

The testing takes place as Facebook searches for more sources of revenue. The company is starting to see results, posting a 41% jump in revenue during the fourth quarter.

Shares of Facebook were down nearly 1% to $25 in pre-market trading.

(USA Today)

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