Facebook scraps Beacon, teams with Nielsen for ad data

Advertising success hasn’t come easily for Facebook.

The social network, the world’s runaway leader in the category, has agreed to shutter its controversial Beacon as part of a settlement of a lawsuit over the privacy complaints stemming from the service.

Separately, Facebook today is announcing a multi-year major partnership with market research firm Nielsen Company to make the social network a more desirable and accountable advertising buy for marketers.

The first product, dubbed BrandLift, will bring opt-in polls to Facebook’s home page in an effort to gauge consumers’ reaction to various display ads and brand placements that appear on the site.

Facebook and Nielsen are scheduled to discuss the collaboration this morning at the Advertising Week conference in New York.

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