Facebook recently announced changes to its Terms of Service. Although most of the buzz and controversy surrounded the company's elimination of users' right to vote on various privacy amendments, another important element of the changes surrounded the details of the Data Use Policy, which some say revealed the company's plans to come out with a third-party ad network. In order to be able to place ads on third party websites, Facebook needed to modify its user agreements to be able to share user data on likes and other status updates and interests outside of the Facebook realm with other companies.
For example, under the new Terms of Service, data can now be shared between Facebook and Instagram. Some observers have speculated that Facebook will use this as a means to place ads on Instagram. This would be a boon to Facebook's investors that have been looking for a means for the company to expand in mobile advertising, which has so far been unsuccessful on Facebook itself.
http://www.businessinsider.com/facebook-ads-external-websites-2012-11
http://qz.com/30290/what-facebooks-new-terms-of-service-really-mean-ads-are-coming-to-instagram/
http://www.techweekeurope.co.uk/news/facebook-user-policy-changes-99949
-Linda Lou
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