Despite its surging Internet audience, Facebook has yet to prove it can wring steady revenue out of advertisers. Now it's trying a new tactic to woo Madison Avenue. The Palo Alto, Calif., company is rolling out a new ad format called "engagement ads" that further blurs the line between marketing and social networking.
The new ads appear on the main screen when a person first logs in to Facebook. They prompt a user to do something within the ad, such as comment on a movie trailer or RSVP for the season finale of a TV show. If the user completes the action, such as adding Bravo TV's "Project Runway" show to a personal list of events, Facebook tries to get Bravo's ad in front of more eyeballs by sharing a notice about what the user has done with their friends.
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