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June 24, 2010

Facebook goes local : To Offer Location based online Advertising Services

Amidst reports of Facebook revenue reaching $800 million this year . Facebook is apparently , is "pretty close" to providing a location-based service for its advertisers, chief executive officer Mark Zuckerberg said.

"We are working on this, knowing where a person is and being able to personalize what's around them," he said at an advertising industry conference in Cannes, France today.

Location services across Facebook might be the proverbial gold mine which would allow a lot of small medium and big advertisers to use facebook to reach users based on their location.. or across users who are always on the move.

The location based advertising would allow brands and companies to leverage their products or services depending upon their geographic location .For example it might provide KFC to advertise their Friend Chicken at a KFC store on a highway which is nearby the user .This would a allow sales offers by advertisers on the site to be delivered to users based on where they are located.

The world’s largest social network is aiming for 1bn users globally in the next few years, its founder, Mark Zuckerberg, told delegates at the Cannes Lions advertising festival on Wednesday. Russia, China, South Korea and Japan are next in its sights as it pushes its global reach.

Facebook’s promise to advertisers is a scale and “reach” that rivals big TV audiences – 13m people every day in the UK alone – as well as a deep “engagement” with brands over much longer periods than a traditional 30-second TV ad.

The company is working with 83 of the top 100 brands, Mike Murphy, vice president of global sales, said in an interview.

Some of the recent online advertising which Facebook is using successfully includes a Facebook Application with Walt Disney that allows users to directly purchase movie tickets to Toy Story 3 on the fan pages of Best Buy and Wal-Mart where they can also discuss products and suggest others. Ford will launch its new Explorer sport-utility vehicle on the site in the third quarter

Zuckerberg said Facebook could be the first social-networking site to hit 1 billion users -- up from 500 million now -- if it succeeds in conquering a few countries that have yet to fully embrace the site. He also seemed comfortable with reports of revenue projection nearing $1 billion.

Zuckerberg, speaking yesterday to a packed room at the annual Cannes Lions International Advertising Festival in France, said there are just four countries--China, Japan, Russia and South Korea -- where Facebook isn't the social-networking leader.

Although the site has "no chance" of hitting the 1 billion mark this year, Zuckerberg said it has a decent shot down the line if all goes as planned. While Facebook has fewer than 1 million users in Russia, the growth rate is doubling every six months, he said

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