Bloomberg News

Facebook Starts Ads on Zynga to Expand Marketing Reach

June 22, 2012

Facebook Inc. (FB:US) has started showing advertisements on Zynga Inc. (ZNGA:US)’s website as the company looks to find new ways to help marketers reach users of the world’s largest social network.

Some visitors to Zynga’s site are being shown what Facebook calls “sponsored stories,” ads triggered when a Facebook member “likes” a certain brand or business on the social site. Previously, these ads only appeared on Facebook’s own site and in its mobile applications.

“People may now see ads and sponsored stories from Facebook on Zynga.com,” Annie Ta, a spokeswoman for Facebook, said in an e-mailed statement today. “We don’t share any information about people or advertisers with Zynga and advertisers do not have any new targeting criteria.”

Facebook, based in Menlo Park, California, has fallen 13 percent since its stock market debut last month, amid concerns that ad revenue (FB:US)growth isn’t keeping pace with surging membership. During the first quarter, revenue rose 45 percent to $1.06 billion, a slowdown from 55 percent in the December period. Since the IPO the company has introduced mobile ads and other services to boost sales.

Amy Sezak, a spokeswoman for Zynga, the San Francisco-based maker of social games, declined to comment on the ads.

Earlier this week, Facebook agreed to pay $10 million to advocacy groups for children, consumers and electronic privacy to settle a group lawsuit challenging the use of subscribers’ likenesses in “sponsored stories.” It also consented to revising its terms of usage so members can more easily see when they’re being shown as endorsers of products and games for which they clicked a “like” button.

The technology blog TechCrunch earlier today reported that Facebook began showing ads on Zynga.com.

To contact the reporter on this story: Douglas MacMillan in San Francisco at dmacmillan3@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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Companies Mentioned

  • FB
    (Facebook Inc)
    • $77.91 USD
    • 0.91
    • 1.17%
  • ZNGA
    (Zynga Inc)
    • $3.06 USD
    • -0.02
    • -0.65%
Market data is delayed at least 15 minutes.
 
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