Plug-ins tie users' browsing behavior to their profiles.
Social networking giant Facebook uses Like buttons and its other social plug-ins to record which websites its members visit, and could potentially use that data to inform ad targeting on its own site, or those of third parties.
According to a Facebook spokesperson, the company creates an impression log every time a signed in member views a Like button or social plug-in on a third party site, regardless of whether or not they interact with it. That record, which is tied to members' unique user IDs, includes information on IP address, URL, date, time, and browser, and is retained for a period of 90 days.
Facebook insists it does not use those logs to target ads, and says it currently has no plans to do so, but the widespread use of its plug-ins amongst the majority of major online publishers enables it to construct extremely thorough and detailed behavioral profiles. Just as behavioral targeting or analytics providers drop pixels on web pages or in ads to track users, Facebook collects data in a similar manner through its plug-ins.
However, behavioral companies often compensate publishers for access to their users' data, whereas Facebook does not. According to Say Media President Troy Young, it's up to publishers to decide if the value they're getting from the plug-ins is worth trading for data on their audiences. "Publishers face this issue all the time. Countless vendors of 'publisher services' pull data in exchange for value, and while Facebook takes data, they also push tons of traffic. The question is, what happens long term when the value of data trumps the value of the publisher's content or environment?" he said.
Although Facebook doesn't yet make use of the behavioral information it collects, that data could prove invaluable for advertisers and hugely lucrative for itself. For example, if the social network records a user's presence on ten sneaker-related blogs over the course of a day, a shoe retailer would likely pay a premium to reach that user via an ad placement on Facebook.
In another scenario, Facebook might decide to launch its own ad network utilizing data gleaned from its plug-ins as well as from its own site, or choose to sell audience data to publishers to help them better monetize their own inventory.
At present, however, the Facebook spokesperson reiterated that no user data is sold or passed on to third parties through its plug-ins without their permission, and that no personal information is shared with advertisers. Marketers are, however, able to target ads based on the likes and interests included in members' profiles, including their interaction with plug-ins such as the Like button.
Want to learn more?
Attend ClickZ Live New York March 30 - April 1. With over 15 years' experience delivering industry-leading events, ClickZ Live brings together over 60 expert speakers to offer an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011.
Hong Kong, May 5-6, 2015
A Buyer's Guide to Affiliate Management Software
Manage your performance marketing with the right solution. Choose a platform that will mutually empower advertisers and media partners!
Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.
May 6, 2015
12:00pm ET/9:00am PT