Facebook is harvesting data from outside sources in its bid to become the world’s most effective advertising platform.
In February the social network signed partnerships with four companies that specialise in collecting lucrative behavioral data, although two of them, Acxiom and Datalogix, are among nine companies currently being investigated by the US Federal Trade Commission to show they collect and use consumer data.
In an interview with the New York Times, Gokul Rajaram, product director for ads at Facebook, said: “Our goal is to improve the relevance of ads people see on Facebook and the efficacy of marketing campaigns.”
The aggressive move stems from the need for the social network to increase its revenue. Shares in the company are now worth far less than its initial public offering of US$38 in May, 2012.
Another tactic used by Facebook recently was to get potential advertisers to give them the list of email addresses of their customers.
If those customers are on Facebook, then the social network will show them the relevant advertisements.
One of the first examples was members-only online men’s retailer JackThreads. The retailer handed Facebook two million customer email addresses and two thirds of them were on the network.
Sales reportedly increased by 26 per cent.
Rajaram allayed fears more information was being shared without the customer’s permission.
He added: “It’s ultimately good for the users. They get to see better, more relevant ads from brands and businesses they care about and that they have a prior relationship with.
“There is no information on users that’s being shared that they haven’t shared already.”
