New Facebook ads 'may not be right for all'

26th August 2008

A new ad system unveiled by social network Facebook last week may not be beneficial for all organisations, according to CNET News.com.

The news source has suggested that the scheme, which allows Facebook members to interact with certain ads by leaving comments on them and using them to send gifts to each other, may prove detrimental to some companies' marketing activities.

It explained that while popular or cult businesses may be most likely to succeed with the ads, lesser-known entities could struggle to achieve significant recognition through the program.

Dave Gentzel, co-founder of SocialMedia, told CNET News.com: "This is something new that kind of already requires awareness, because a lot of this is driven through peoples' perception of the product."

Social media marketing is gaining momentum elsewhere, however - a recent JupiterResearch report suggested that US retailers are increasingly taking to the medium to target young consumers during the back-to-school season.