Igital Word-of-Mouth on Facebook Versus traditional Word-of-Mouth

Will Facebook s digital word-of-mouth advertising perform as traditional Word of Mouth does in increasing the persuasiveness of a targeted marketing message? How are Facebook s Beacon and other advertising tools shaping the future of Word-ofMouth on the world-wide web?

A company wanting to advertise on Social Networks has one of three options:
1) Traditional display web advertising (banners& etc)
2) Profile Page Presence (Adidas having a profile page on Facebook or MySpace.com)
3) Social Networks Digital Word of Mouth  (Social ads, beacon,..etc)  A new concept introduced by Facebook and is said to  act as traditional Word-of-Mouth does in its ability to persuade buyers, according to Facebook itself. Facebook s digital word-of-mouth includes a bundle of advertising tools that will maximize customer s engagement with certain brands.
The Social Ads and Beacon phenomenon is considered to be the most innovative product of online advertising. They leverage the power of Facebook News Feed by serving relevant stories about friends engaging different brands. Furthermore, these advertising tools will inform users of their friends purchases or products that they ve endorsed and use that as a force to drive trusted purchase decisions.

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