The article I read is about how Facebook and other social networking sites make money off of you using ads. Ads and popups themselves weren’t doing the job because people just ignored them so they formed new programs. Lotame is a program basing the ad’s success on how much time a person spends engaging with it. The program uses a person’s basic data gained from the social network site to send out cookies to monitor their behavior online. Facebook developed Beacon, which connects businesses to users. So if a user bought a book on Amazon.com, Facbook could tell which of the users friends would also be interested in the book from their personal information. Amazon would then pay Facebook to an ad to all of the friend’s news feeds. Adam L. Penenberg created a viral loop that allows a user to find the dollar amount of what they are worth to social network sites. It takes your activity and the activity of your friends but mostly on your ability to persuade others to download the widget as well.
The innovation present is allowing social networks to make money off the users and for the users to see how much their worth. I think that Beacon will help the U.S. economic situation because it will allow businesses to get their name out, but I don’t think Lotame will help anything because no one really reads ads in the first place.
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