In a post on Facebook, the website explained how it uses ads to make money. The new Timeline profiles appear to be organized chronologically by month, but they are actually organized by an algorithm called “Graph Rank,” which measures direct payments to Facebook and app/user popularity to determine the order of the profile. Additionally, Facebook users will now appear in highly personalized ads targeted at their friends called “sponsored stories.” Facebook says, “If you’ve liked that business’s page, the story about you liking the page (including your name or profile photo) may be paired with the ad your friends see.”
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