Just how does Facebook’s Mark Zuckerberg plan to reach the mythical $10 billion valuation its investors talk up ahead of a possible initial public offering?

The Wall Street Journal gives a clue in a story on how it plans to boost ad sales at the social network du jour. It sounds similar to, but not the same as, Google’s hugely profitable keyword search system. Facebook is designing an advertising system that lets marketers target ads based on the information users jam into their profiles, according to the Journal’s unnamed sources. By next year, they hope to have in place algorithms that anticipate how receptive users might be to a particular ad.

These ads are unlikely to resemble the traditional banner ads that typically run along the borders of a Facebook page. They could even run in the “news feeds” within the main bar of a users’ profile, mixed in with updates from friends.

Perhaps the new system could help them solve a problem they faced in the United Kingdom, where six big companies including Vodafone and Virgin Media pulled their ads on complaints of having little control over where ads were placed?

Facebook’s Owen Van Natta certainly hoped so, he told Reuters in August. “We have to bulid some technology in order to provide some additional controls and we really excel at that.”  He added, “I expect that most, if not all, of those advertisers are going to be coming back on board if they haven’t already.”
(Wall Street Journal)
(Reuters)

Keep an eye on: 

• Microsoft and content delivery network Limelight Networks strike a technology agreement to help improve the reliability of Microsoft’s online services. (Reuters)
• “BioShock” sales and publisher Take-Two’s shares jump on rave reviews of the creepy underwater shooter game.  (Reuters) 
• Ticketmaster doesn’t expect to renew its ticket-selling deal with its largest client, U.S. concert promoter Live Nation. Will the Olympics make up for it? (Reuters)
• “Guitar Hero II,” “NCAA Football ‘08″ and the Wii brought hordes of gamers to GameStop during its second quarter, judging by a seven-fold jump in profits. (Reuters)