Facebook’s first test partner is Buzzfeed.
How it works: When a user clicks share on a story published by Buzzfeed, that story will appear – like it already does – in the News Feeds of that users’ Facebook friends. The big difference is that in this test, there is a new line in the stub Facebook shows users in the News Feed. The line credits the sponsor of that post.
For years, Facebook watchers have wondered when the company would begin trying to profit from that the fact that it sends millions of people to third-party, ad-supported Web sites every day.
Finally, brands will have a way to put ads on Facebook in a proper context. Instead of buying a small unit along the side of the News Feed, showing up next to who knows what kind of weird viral video or party picture, a brand like Marc Jacobs – which is today sponsoring the New York Times front page – will be able to sponsor all stories published by the New York Times that appear in any Facebook users news feed.
Right now, Facebook is not charging Buzzfeed. But that will probably change. For now, Buzzfeed is only putting sponsor logos in the Facebook stubs of its shared advertorials. To us that seems like a first, safe step for both parties. Maher thinks that if the business never evolved beyond advertorials, it could mean an extra $300 million dollars in revenue for Facebook.
Full Story at Business Insider