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Article

Title: Facebook Apologizes for New Ad System

Author: Lee, Ellen Article Type: Company
Source: San Francisco Chronicle, pC1(2) Publication Date: Dec 6, 2007
URL of Publication: http://www.sfgate.com

Facebook had to backtrack on its controversial new marketing program amid protests by Facebook users themselves. Facebook introduced Beacon, a highly anticipated 'social ads' program that was supposed to be a revolutionary way for Facebook's 55 million users to tell their friends about details of their lives including the items they were purchasing, restaurants they were reviewing, and vacations they were planning. The problem was, many users did not want to share that information and users complained that they were not aware that the information was being sent. Facebook first tried to make amends by updating their tools so that users would be better alerted before the information was delivered, but when that was not enough to appease angry users, it provided the ability to shut off the program permanently and promised not to store users' actions if they did indeed decide to shut it off. Although the snafu is a mar on Facebook's record, it most likely will not hurt the social networking giant in the end. The greater risk is that advertisers will get cold feet and will be unwilling to buy in to similar attempts at advertising in social networks.

Companies:
Facebook Inc

Products:
Facebook Beacon

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