Facebook's head of privacy policy, Erin Egan, hinted in a Web chat on Monday that Facebook would begin serving targeted ads to users on third-party websites.

Pizza chain owner Melissa Ferriman wanted to boost business using an online social deal promotion. She tried services like Groupon, but eventually chose Boston-based Privy because it connected her restaurant with customers who weren't just looking for the next promotion.

Yahoo launched a free marketing dashboard on Wednesday to boost its advertising appeal for small and midsized businesses by simplifying digital marketing for them.

Google is introducing tools such as one that measures the percentage of an online advertisement that is viewed and for what duration, to help advertisers measure the effectiveness of their campaigns beyond impressions and clicks.

Internet advertising revenue soared to a record high of US$31.7 billion in 2011, up 22 percent from 2010, according to a report released Wednesday by the Interactive Advertising Bureau and conducted by Pricewaterhouse Coopers.