It’s Clear Facebook Advertising Works: McNamee

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June 12 (Bloomberg) -- Elevation Partners Co-Founder Roger McNamee discusses Facebook’s changing advertising model on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

This is the great fear for some users?

Giving users control is a big deal.

The two issues that you are talking about, that is what you should pay attention to for the consumer.

That is to say, if you want to opt out of that kind of targeting, you can do so.

To me, facebook sensitivity to user privacy concerns has been writing very radically in the last 12 months, especially the last three or four.

I view that as positive, because it is clear that advertising on facebook works.

I bought a guitar last week from -- really?

I'm shocked.

How many have you got this year after is the only one i bought this year.

I saw an ad on facebook and i bought it.

The funny thing is, they will also show you why you were targeted.

What it was about your behavior that did it.

And if you don't want that, you can turn it off.

And my own experience, both as an advertiser and the consumer, is that it really works.

The more you know about the why, the more effective it will be.

With a second.

When the user turns off the things they find annoying, the ads will actually become more effective because they are saying, although i may have clicked on a bunch of sites about athletes foot, i'm good now.

Or the people who buy vogue magazine, or vintage guitar, those are publications that are primarily advertisement, but people buy them for the ads, because the context for the ads is the context people are looking for.

They pay money to see ads.

I think what facebook is doing is making a baby step toward making the advertising really contextually relevant to the facebook members.

And in my mind, there is nothing but goodness.

If someone is showing me the opportunity to buy a really good guitar, that is a positive thing in my stream.

If i have nothing but guitar at, i probably would have more than one guitar the first six months of the year.

But you might be broke.

How does facebook know what i'm doing on the web when i'm not on facebook?

Keep in mind, you are using facebook connect to sign into a lot of other sites.

From that, the authentication process gives them data and gives you security.

It gives you confidence and all these other things.

It has been a very positive trait.

I actually think this notion here -- if i'm on a site that i know i like and they know i like and they say, is it ok to show you stuff relevant to that and i can turn it off if i do not like it, to me, that is all goodness.

This is part of facebook maturing and becoming a responsible member of the media industry.

I thought you were going to say, becoming utility.

No, no.

There is that.

They're like the telephone company before it was broken up.

In the early days of the old mob l -- ma bell, it was the way that adults communicated.

Now it is the instagram and snapchat with the kids.

I think the facebook connect is definitely one of the most powerful things they ever did.

-- stealthily one of the most powerful things they ever did.

The way i understand it works is they have essentially given away -- they have gone to other companies and said, we will take over your user id, password, and authentication problems and we will give you statistics about how users are using your website if you will let us be the ones to gather that information.

But i think that is fundamentally correct.

It is a great value on both sides.

In my mind, over time, facebook's ability to give consumers the better online experience was really helped by facebook connect.

It made it so easy for people to sign onto site.

He did not have to have 100 passwords and you did not have to remember whether you checked into something before.

And the quid pro quo of that, if all of a sudden the advertising is relevant to what you are interested in as opposed to not relevant, that will feel really good to you.

Is this going to turn on a firehose of advertising revenues for these guys?

I don't think so.

When you have as many members as they have, the number of ads that they have and there's remarkably low.

Compared to things like newspapers where advertising dominates the experience.

Facebook has to be careful on that issue, but the more accurate the -- accurately targeted, the fewer you have to

This text has been automatically generated. It may not be 100% accurate.

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