Facebook Missteps: Sponsored Stories & The Omission Of Permission

If you read this blog regularly, you know that I can be a Facebook supporter (some may say apologist), but today I have a bone to pick with it.  

Where others frequently attribute shady intent to everything Facebook does, I see a company legitimately trying to balance the needs of users with the demands of advertisers who fund the free service. Consumers love Facebook, so much so that Facebook now accounts for one of every four page views in the United States, yet you and I pay nothing for it. Or it is more accurate to say that while we provide no cash to Facebook, we do, in fact, pay with our time, attention, data, permission, and clicks (which Facebook converts into cash).

But even Facebook supporters can and should question when the social network takes a step that pushes the envelope of best practices in permission marketing, and I believe it has done just that with Facebook's new Sponsored Stories product. What I find frustrating is how tantalizingly close to perfect the model is, yet the omission of a single feature makes all the difference.

Here's how Facebook Sponsored Stories work:

  • You post a status update about a brand, such as a check-in, like, or a piece of praise.
  • Because that signal of affinity is so ephemeral within the news feeds of your friends (or perhaps may never even be displayed there), the brand can now choose to pay Facebook to turn your status update into an ad. 
  • Your friends (and only your friends) will then see your status update in the right gutter of Facebook.com, along with your name and profile picture.
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Why Aren't Facebook Ads More Transparent?

For a company that thrives on transparency, Facebook's advertising isn't very transparent.  Check out your Facebook home page, note the ads on the right side, and tell me what companies they're for.  Sure, the ads probably cite brand or company names in the headlines and images, but who are the companies who paid for those ads? Where will you end up if you click those ads? And an ever better question is, what will happen if you "Like" the ad--will you be giving information to a trusted brand or a spammer?

Now go to Google, conduct a search, and check out the AdWords on the right side. Who sponsors those ads? And where will you end up if you click on those ads?

Google advertising is transparent, and Facebook advertising is not. The difference is a single line of text: AdWords creates transparency by including a "Display URL."  Within ad AdWords, advertisers can set different Destination and Display URLs, but the two must be within the same domain so that (in the word of Google's AdWords form), "users know what to expect when they click your ad."  (The reason there is a difference between the Destination and Display URLs is so that advertisers can direct people to a specific page in their domain while displaying the much shorter root domain in the ad ). 

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