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Facebook Expands Advertising Into News Stream With Sponsored Stories

December 20, 2011: 11:54 PM EST
In preparation for its upcoming IPO, Facebook says it will begin to feature "Sponsored Story" ads from marketers in users' news feeds in January. The change will boost the presence of marketers beyond the right margins of pages – and boost ad income. The higher ad rate sponsored story ads, which feature friend endorsements, are considered Facebook’s most “buzzed-about” ad product and for the first time will appear in the news stream, increasing their visibility. A small group of advertisers will take part in the launch. Users will see only one sponsored story daily in their news feed during the initial phases. In addition, mobile users will not see the sponsored ads until March, according to a Bloomberg report.
Cotton Delo , "Facebook to Start Placing Ads in User News Feeds in January", Advertising Age, December 20, 2011, © Crain communications
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