Facebook's War With Google Goes Nuclear

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Not only does Facebook (NASDAQ: FB  ) want to know as much about you as Google (NASDAQ: GOOGL  ) does -- the social network also wants to pitch products directly in your News Feed.

In a recent blog post, Facebook said it was under way with an "alpha" test of Facebook Exchange ads running inline, alongside friends' updates, rather than to the right of the screen, as has been the case historically.

In the following video, Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova says the key is Exchange, which is Facebook's mechanism for gathering personal browsing history for use in crafting pitches. Where the ads appear is secondary to the process of creating them.

Do you agree? Will News Feed ads drive away users? Let us know what you think about the social network's advertising strategy in the comments box below.

For further analysis of Facebook and the social media opportunity, I invite you try our newest premium research report in which we lay out the case for and against buying shares of the social network at current prices. Should you "like" this stock? Find out all you need to know by clicking here now.

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