Advertising on Facebook

Facebook Inc. wants to turn the 52 million members of its popular website into champions of the brands that advertise there. To do so, the company hopes its "news feed" capability (which shows users a streaming list of what their friends are doing) will help users promote its advertisers.

Facebook is attempting to harness the power of word of mouth among a circle of friends. The most valuable marketing asset is a trusted referral by a friend.

Facebook is letting marketers create profile pages and invite fans of their products to become their online friends. When people declare themselves fans of a particular product, Facebook will alert all their friends on the site.