WSJ: Spying on consumers a fast-growing business

I think facebook will make billions on this. Basically facebook will have the ability to track all your interactions in the facebook environment and develop good intelligence of your consumer preferences.

Facebook will then create a targeted ad platform that utilizes this intelligence. Advertisers will pay good money for better targeting.

Targeted online ad market is huge.

This is facebooks way of delivering targeted ads vs googles targeted ad method, of pairing ads with search terms.

The competitive advantage facebook has is that it's hard for a competitor to copy and replicate the same ad network and get the same amount of consumer intellligence. The competitor in essence has to create a hugely successful and popular social network and get people to interact/ share a lot on it before they can even think of competing with facebook.

Facebook wants you to share and connect with people because the more you do the more information they can use.

Facebook is sitting on a goldmine.