Published: 08 Nov 2007

As per the information available, Facebook began selling ads that display people's profile photos next to commercial messages that are shown to their friends about items they purchased or registered an opinion about.

For the first time, the social network gives advertisers the ability to launch dedicated pages on the site that will let users identify themselves as fans of a product. Advertisers also will be able to show users their pitches in the guise of a friend's endorsement. For example, if the friend just booked a vacation on an online travel agency, the company will be able to display the friend's photo to attract the user to buy flights and hotel stays.

"What we're building here is a massive network of real world connections through which people can share information," Facebook Chief Executive Mark Zuckerberg reportedly said.

According to media reports, the company has signed on several dozen partners for the system, including Coca-Cola, Blockbuster, Verizon, Travelocity, and Conde Nast.

Zuckerberg was unapologetic when asked whether the influx of advertising could put off users who flocked to the site as a fun way to interact with friends, saying "It's an ad-supported business."

Facebook says that many of its 50 million active users already tell friends about particular products or brands they like, and the only change will be that those communications might start to carry ad messages from the companies that sell them. Facebook is letting advertisers set up their own profile pages at no charge and encouraging companies like Blockbuster, Condé Nast and Coca-Cola to share information with Facebook about the actions of Facebook members on their sites.

Coca-Cola plans to use the model to interact with Facebook users online and off-line. It plans to feature its Sprite brand on a new Facebook page and invite users to create, configure and interact with an animate Sprite `Sips' character. Consumers in the US will be able to unlock special features and accessories on the Facebook page by entering a PIN code found under the cap of bottles of Sprite, reported media.

Carol Kruse, Vice President of global interactive marketing at Coca-Cola, said: "We have consistently explored new ways to reach our target audience with a compelling brand experience. With Facebook Ads, our brands can become a part of the way users communicate and interact on Facebook."