Facebook watch (David Kirkpatrick in FORTUNE)
"...snip... Facebook's strategy is based on a relatively new concept known as word-of-mouth marketing. In recent years, a sizable industry has grown up around the idea of getting people to talk to other people about products and services while hanging out together at neighborhood barbecues or late-night dance clubs. [Andrew's note: a la Magda in Wm Gibson's Pattern Recognition] Consumers, the thinking goes, are far more likely to trust a pitch from friends than from a 30-second TV spot.It makes sense. And now Facebook is automating that process -- combining e-commerce with word-of-mouth marketing. When a Facebook user buys something, the seller will ask for permission to promote that fact to his or her social network (and, presumably, pay Facebook a fee if the user agrees). The contrast with conventional advertising is stark. It's more akin to an Amazon seller who pays a per-sale commission than an advertiser who pays for a click on Google (Charts, Fortune 500)."


