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Pedro Gonçalves

On Mobile, Google Demotes The Click | Fast Company - 0 views

  • You click. You buy. An advertiser pays. In an over-simplified sense, that’s how desktop digital advertising works. That system doesn’t work as well on mobile, however, where an estimated 40% of clicks are accidents (or fraudulent) and advertisers are still wary of their value. Research firm eMarketer projects that advertisers will dedicate just 2% of their budgets to mobile advertising this year--even though customers are increasingly logging in through their mobile devices.
  • At Google and other companies that sell advertising, the golden question has become not how to get consumers to simply click more mobile ads, but how to measure effectiveness beyond the click--even if that means tracking offline actions or purchases made on another screen.
  • “There’s this incredibly new, incremental engagement point called ‘out and about’ or called ‘sitting on public transportation’ or called ‘at home on the couch in front of the TV' and these are places where we didn’t used to be connected,” Jason Spero, Google's head of mobile ads for the Americas, tells Fast Company.
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  • In these new mobile settings, maybe success for an ad doesn’t mean lots of clicks or even lots of online purchases. Maybe it means phone calls, or foot traffic to stores. Maybe it means someone searches for something now and later follows up on a desktop computer. Google has been exploring ways to measure all of these possibilities.
  • aims to turn foot traffic into a measurable outcome of mobile ads, something that it has already done with phone calls. With a click-to-call ad offering, users can click a phone number within their search results to call an advertiser who has sponsored the term.
  • A Google spokesperson says that on average, campaigns see on average a 6% to 8% increase in average click-through rate when brands include a click-to-call phone number in an ad.
  • About 30% of restaurant searches and 25% of movie searches take place on mobile devices. About 25% of YouTube traffic is mobile. But according to earnings reports the company filed with the SEC, its cost-per-click fees and profit margins are smaller for mobile advertising products than for similar advertising on its websites.
  • He argues that it makes more sense to measure effectiveness of mobile advertising by metrics such as reach, frequency, and recall--like TV--than by the same click-through metric on which desktop digital advertising relies.
  • Facebook's Head of Measurement and Insights, Brad Smallwood, recently made a similar argument for all digital advertising, desktop included. He wrote in a blog post that when brands focus on reach rather than clicks on Facebook, they have 70% higher return on investment from their campaigns. T
Pedro Gonçalves

Is Native Advertising Just Another Term for 'Good Advertising'? - 0 views

  • consumers looked at native ads 53% more frequently that display ads, and 32% of respondents said they would share a native ad with a family member.
  • Does that mean those consumers will buy more of the products being advertised? The report claims an 18% lift in purchase intent for native advertising vs. banner ads. Cristina Heise, VP of ad agency gyro Cincinnati, says that ringing up a sale isn't necessarily the purpose of a native ad. "Most of marketing is about repeat exposure and conditioning associating an experience with a brand," she says.
  • Heise's view, native advertising "goes native" in the sense that it adjusts to its surroundings. That doesn't mean a BuzzFeed ad unit necessarily, though. Heise says a compelling fashion ad in Vogue could be considered native advertising.
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  • The more you delve into it, the more "native" seems to be a synonym for "good" with regard to advertising.
Pedro Gonçalves

Nielsen: Online Ads Show Biggest Increase Globally in Ad Spending - 0 views

  • According to a new report from consumer researcher Nielsen, Net advertising saw the biggest increase among all ad spending worldwide in the first quarter, with a 12.1 percent increase compared to a year ago at the same time.
  • The report, called the Global Adview Pulse, also found increases in all other media, except magazines. Radio was second with a 7.9 percent increase, followed by outdoor advertising with 6.4 percent, ads in cinemas at 4.1 percent, newspapers at 3.1 percent, and 2.8 percent for TV. Magazines dropped 1.4 percent in ad spending.
  • Ad budgets in North America grew by 2.1 percent, and recession-hit Europe dropped 1.4 percent — the only region to see a decline.
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  • Advertising spending in emerging markets is increasing faster than in the worldwide market
  • Globally, advertising was up 3.1 percent in the first quarter year-over-year to US$ 128 billion, following a strong finish last year.
  • In terms of total dollars spent, TV is still king with the most spending. The growth in TV market ad spend, like the growth in overall spending, was region-dependent. In the emerging markets of the Middle and Africa, for instance, TV soared 33.8 percent, while it grew only 4 percent in North America.
  • The evolution of print advertising is also heavily region-dependent, meaning that any predictions about the demise of print might best specify a location. Magazine ad spending actually increased by 7.6 percent in Latin America, for instance, but dropped by 5 percent in the U.S. Newspapers showed a similar difference, increasing by 10.3 percent in Latin America and dropping by 2.1 percent in the U.S.
  • However, the growth in online advertising was consistently strong around the planet. The Middle East and Africa again led, with 35.2 percent, followed by Latin America at 31.8 percent and Europe at 12.1 percent. Radio also saw growth in every region.
Pedro Gonçalves

Let's Talk About Why Yahoo Really Bought Tumblr: Native Advertising - ReadWrite - 0 views

  • what is native advertising? A quick, simple definition: It's an ad whose form and delivery is identical to the content environment in which it is served. The opposite, in other words, of interruptive advertising: billboards, takeovers, and big banners that take up space on the page but don't otherwise relate.
  • Native advertising is not without its controversies. A big one is the learning curve: Marketers must master each potential advertising environment and learn its intricacies, from Tumblr users' love for animated GIFs and the phrase "fuck yeah," to Twitter's peculiar language of retweets and replies to Facebook's maddening algorithms.
Pedro Gonçalves

Study: Four out of 10 Mobile Ad Clicks are Worthless - 0 views

  • As much as 40% of clicks on mobile ads are so-called worthless clicks, offering no return on investment for the advertiser, according to a new study.
  • The study, which was released on Wednesday, was commissioned by Trademob, a Berlin-based mobile app marketing platform. The company analyzed six million mobile advertising clicks on 10 of the biggest mobile advertising networks. Conclusion: Advertisers are wasting a lot of money on mobile ads.
  • The study, which was released on Wednesday, was commissioned by Trademob, a Berlin-based mobile app marketing platform. The company analyzed six million mobile advertising clicks on 10 of the biggest mobile advertising networks. Conclusion: Advertisers are wasting a lot of money on mobile ads.
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  • 22 percent of ad clicks are “misclicks,” or accidental clicks, and 18 percent were fraudulent. Those accidental and fraudulent clicks had a conversion rate of less than 0.1%.
  • A similar study conducted a year ago said 47% of clicks on mobile ads were worthless
Pedro Gonçalves

The Secret To Marketing Success On Facebook? Advertise Like Your Grandfather | Fast Com... - 0 views

  • A new study by Facebook brings some big news that, curiously, at first blush might not seem like much news at all. It's this: If you want to create successful ads for the social network, just do the same thing you would do if you were advertising on TV. Or in magazines. Or on the radio.
  • "Marketers were asking us, 'Are the fundamentals of advertising on Facebook the same as the fundamentals elsewhere?'" Bruich says. The results of the study point to yes, he says, and that means "the experience they've built up over the years and the instincts they've had can be applied to making more successful ads on Facebook."
  • Bruich is presenting the results of the study in a paper called "What Traditional Principles Matter When Designing Social" at the Advertising Research Foundation's Audience Measurement 7.0
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  • The study had professional marketers evaluate 400 Facebook ads against six traditional criteria for advertising creative: Whether the ad has a focal point, how strong its brand link is (ie: how easy it was to identify who the advertiser was), how well the tone of the ad fits with the brand's personality, how noticeable the ad is, how effective it is at getting its point across, and whether there is a "reward" for reading it (ie: Did it make you feel good? Did you learn something?).
  • The study found that the ads that performed best were the ones that also did the best job of hewing to advertising fundamentals, especially focal point, brand link, and tone. The most important criteria, says Bruich, was that the ad needed to have some kind of reward.
Pedro Gonçalves

Twitter Is About To Officially Launch Retargeted Ads [Update: Confirmed] | TechCrunch - 0 views

  • Twitter has confirmed our scoop with the announcement of Tailored Audiences - its name for retargeted ads. Available globally to all advertisers via a slew of adtech startup partners, advertisers will be able to target recent visitors to their websites with retargeted Promoted Tweets and Promoted Accounts.
  • Twitter’s users are on mobile. Seventy percent of its ad revenue already comes from the small screens, and it likely follows that a majority of engagement is on mobile, too.
  • retargeting happens like this. You visit a website, say a travel booking site, and look at a page for buying a flight to Hawaii. You chicken out at the last minute, don’t buy, and navigate away, but the site has dropped a cookie for that Hawaii flight page on your browser. Then, when you visit other sites or social networks that run retargeted ads, they detect that cookie, and the travel site can show you an ad saying “It’s cold in SF. Wouldn’t a vacation to Hawaii be nice?” to try to get you to pull the trigger and buy the flight it knows you were already interested in. But without cookies on mobile, you can’t retarget there… …unless you can tie the identity of a mobile user to what they do on the computer. And Twitter can. It’s one of the few hugely popular services that individuals access from multiple types of devices.
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  • Essentially, when you log into your account on your full-size computer, Twitter will analyze the cookies in your browser to see where you’ve been on the non-mobile web. Then, when you log in to that same account on mobile, it can still use your web cookies to hit you with retargeted ads.
  • mobile phones don’t have the ability to set cookies so you can’t do retargeting.
  • Facebook only recently began allowing retargeted ads on mobile, and only through a “custom audiences” targeting program separate from FBX.
  • Lucky for Twitter, most of what people do on it is public, so it doesn’t spark the same privacy concerns as Facebook. Twitter also offers an opt-out of retargeting under Promoted Content on its Security And Privacy settings page. Plus it honors Do Not Track for users that enable it in their browsers.
  • It’s also recently opened up keyword targeting so advertisers can reach people who’ve tweeted certain words. Between keyword targeting and cookie retargeting, Twitter is breaking out of the demand generation and into the lucrative demand fulfillment part of the advertising funnel where Google’s search ad business lives. Advertisers are willing to pay top dollar if you can deliver them someone ready to buy their product. And there’s no better sign of someone’s intent to buy than having recently visited a site and almost made the purchase already. Cookies could be very tasty for Twitter.
Pedro Gonçalves

Advertisers can now target Facebook ads by recency of activity - 0 views

  • Facebook has created a new way for businesses and developers to target ads to users who have taken an action on Facebook or in an app within a more specific time range. Using the “action spec” targeting capability, which allows advertisers to reach users by the actions they take in Open Graph apps and on Facebook directly, an advertiser could designate a time range shorter than 14 days
  • a local business might want to reach users who checked into their store within the past week. A developer might want to target users who installed their app in the past three days. A page owner might want to retarget users who viewed one of their page tabs the day before.
  • Action spec targeting is still a beta feature limited to advertisers working with Preferred Marketing Developers
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  • the feature offers developers unique opportunities to reach users who have taken specific in-app actions, including in their competitor’s apps. It also gives brands ways to segment and target their fans by the actions they take on their page or a competitor’s page.
  • Action spec targeting is also interesting in that advertisers can define a “negative action spec,” meaning users who have not taken a particular action. For example, a developer could reach users who have played a game, but not made an in-app purchase in the last 10 days. Advertisers can also reach friends of users who have taken a particular action.
Pedro Gonçalves

Sweden's Advertisers Warm to Content Marketing - eMarketer - 0 views

  • A majority of Sweden’s advertisers now use some form of content marketing to enhance their brands
  • While 69% of those polled said they knew what content marketing was, nearly one-quarter (23%) said they had heard of it but didn’t know about it.
  • Among marketers who had content strategies, 80% said that form of marketing was at least somewhat effective at strengthening their brand, and a similar number said it nurtured existing customer relationships. More than half said it was effective for finding new customers. It was less good at generating direct sales, according to this sample.
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  • Nearly all the advertisers polled (92%) said they aimed content marketing at their customers, and 54% targeted prospects. Six in 10 also created content designed for journalists or others in the media. The most popular approach—mentioned by 65%— involved placing content on both print and digital platforms, while 43% used only digital channels.
  • Facebook was the runaway winner when it came to distributing branded content; 84% of advertisers said they had used it, and a further 11% planned to do so in the future.
  • More than three-quarters (78%) of those polled said they had produced newsletters, and 12% intended to do so, while 74% had posted content on properties such as partner websites. Pinterest was one of the least compelling propositions for these advertisers. Just 8% said they had used it to post content, and 3% planned to do so; 73% said they weren’t even considering it at the moment. Despite the growing enthusiasm for content marketing, content-related budgets remain rather low, judging by this research. More than two in five respondents (42%) reported that their company spent less than SEK1 million ($147,711) on these initiatives, and 24% spent between SEK1 million and SEK5 million ($738,552). Yet only 6% said they had no funds at all for content marketing. In another vote of confidence for content, 53% of advertisers said their content budgets would increase in 2014.
Pedro Gonçalves

Tumblr's Teenaged, Double-Edged Sword | TechCrunch - 0 views

  • Tumblr blogs tend to lack the glossy, professional, high-minded design of other social networking sites, including the behemoth that is Facebook and the SMS-inspired Twitter. If anything, these teenaged Tumblrs harken back to earlier web days where users built their own pages on AngelFire and Geocities, with atrocious backgrounds, upgraded cursors, and dancing GIF images galore. GIFs, in fact, are so hugely popular on Tumblr that the company even began experimenting with GIF-based ads.
  • According to Pew Internet’s study from earlier this year, 13 percent of Internet users ages 18-29 use Tumblr, while only 5 percent of those 30-49 do, 3 percent of those 50-64
  • Demographic data from Quantcast further drives home just how youthful a site Tumblr has become. 21 percent of its audience is under 18, 30 percent is 18 to 24, and 22 percent is 25 to 34
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  • Site users don’t tend to have kids of their own, make somewhere between $0 and $50,000 (66 percent do), have either no college (41 percent) or college backgrounds (48 percent), and tend to reflect a more ethnically diverse makeup.
  • Ten out of the ten top Hollywood studios advertise on Tumblr now
  • the U.S. is Tumblr’s top traffic source.
  • Tumblr’s future, for now, seems to be closely tied to its young adult demographic, their whims, and perhaps even their historical aversion to online ads. This audience has grown up connected, is often skeptical and cynical when it comes to brand advertising
  • It’s not an easy group to reach, which makes Tumblr’s revenue potential tricky to pin down. Too much or the wrong kind of advertising, and a fickle teen audience may find a new home elsewhere. Though Tumblr is now home to over 100 million blogs, if a good chunk belong to teens, it’s difficult to count that as serious traction –  today’s teens are less committed to their digital creations than adults, having already invented methods like “whitewalling” and “super-logoff” to erase and hide their Facebook pages, and are now turning to “ephemeral” messaging apps like Snapchat, which delete their communications upon viewing.
  • Tumblr will need to be careful with the results of those advertisers’ efforts. Overdone marketing messages could sour Tumblr’s most engaged users on their online hangout. Done well, however, Tumblr could endear itself to its reblog-happy user base even more, connecting aspirational imagery and content with those who are still young enough to dream they can spend their way into new feelings.
Pedro Gonçalves

eMarketer: Desktop PC Web Advertising Will Peak in 2014 | Digital - Advertising Age - 0 views

  • Mobile advertising is continuing to grow, but it's doing so at the cost of desktop ad spending
  • U.S. digital ad spending to grow 14% this year and reach $41.9 billion, much of that incremental growth ($7.7 billion) will be driven by spending on mobile, not desktop, ads. In fact, spending on desktop ads is expected to decrease after it hits its peak in 2014
Pedro Gonçalves

Twitter's New Ad Product Could Create Hub Of Aggregated Advertising Data | Fast Company... - 0 views

  • now brands can serve up ads to users based on the content they're actually tweeting.
  • keyword-based advertising
  • advertisers can buy specific keywords to target certain users. "For example: let’s say a user tweets about enjoying the latest album from their favorite band, and it so happens that band is due to play a concert at a local venue," Malhotra explained. "That venue could now run a geotargeted campaign using keywords for that band with a tweet containing a link to buy the tickets. That way, the user who tweeted about the new album may soon see that Promoted Tweet in their timeline letting them know tickets are for sale in their area."
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  • To set up a campaign, advertisers can choose the keywords or phrase they want to target. Next, they can set more specifics, such as the location or gender of a user, or what device he or she is using. Twitter says early tests of this new ad product yielded higher engagement rates. GoPro, for example, saw "engagement rates as high as 11%" when using keywords to target users on Twitter.
Pedro Gonçalves

Internet Ad Revenues Again Hit Record-Breaking Double-Digit Annual Growth, Reaching Nea... - 0 views

  • Digital advertising revenues climbed to a milestone high of $36.6 billion in 2012
  • That historic number marks a 15 percent rise over 2011’s full-year number, which itself had been the highest on record, at $31.7 billion.
  • 2012’s fourth quarter numbers, at $10.3 billion, rose by 14.9 percent from $9 billion in the final quarter of 2011. These 2012 Q4 figures represent an uptick of 11.6 percent over Q3 2012, which came in at $9.2 billion.
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  • Digital video, a component of display-related advertising, brought in $2.3 billion, marking a significant year-over-year increase of 29 percent in 2012, compared to $1.8 billion in 2011. Search revenues in 2012 totaled $16.9 billion or 46 percent of 2012 revenues, up 14.5 percent from $14.8 billion in 2011. Display-related advertising revenues in 2012 totaled $12 billion or 33 percent of 2012 revenues, up almost 9 percent from $11 billion in 2011. Retail advertisers continue to represent the largest category of internet ad spending, accounting for 20 percent in 2012, followed by financial services, which is responsible for 13 percent of the year’s revenues.
  • Mobile accounted for 9 percent of total internet ad revenue in 2012.
  • For the second year in a row, mobile achieved triple-digit growth year-over-year
  • “These record-breaking numbers represent a paradigm shift when it comes to marketers recognizing the role a multiplicity of screens plays in effectively reaching today’s consumers,”
  • “As Smartphones get smarter, cellular networks get faster and user penetration of smart mobile devices increases, the combination of personalization and location will have tremendous appeal to marketers,”
  • Performance-based 64.6% $20,491 65.9% $24,093
Pedro Gonçalves

BIA/Kelsey Predicts Social Native Ad Market Will Double By 2016 | Adweek - 0 views

  • paid social media advertising will increase from $4.6 billion this year to $9.2 billion in 2016
  • "native" ads running on social media sites—contextual promotions that are baked into sites in a customized fashion—will total $1.53 billion this year while growing to $3.85 billion in 2016
  • During that time, BIA/Kelsey prognosticates, social display ads will grow slightly slower, lifting from $3 billion to $5.4 billion. It's the first time the 25-year-old company has broken out social native versus social display spend.
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  • Local social advertising will total $1.1 billion this year, BIA/Kelsey reports, compared to $3.47 billion in national spend. By 2016, the Chantilly, Va.-based firm predicts, local social will nearly triple, to $2.95 billion, while national will nearly double to $6.26 billion.
  • Meanwhile, per BIA/Kelsey, general local media spend will grow from $134.6 billion this year to $147.1 billion by 2016.
Pedro Gonçalves

Do Native Ads Work? | Adweek - 0 views

  • say ads that are disguised as content have higher click-through and engagement rates than intrusive banners because they’re contextual and have quality conte
  • a new survey due out today by Harris Interactive for MediaBrix, a social and mobile ad firm, says otherwise. Harris asked online adults what they thought about three native ad formats—Twitter’s promoted tweets, "Sponsored Stories" on Facebook, and video ads that appear to be content. According to the survey, a majority found the ads negatively impacted or had no impact on their perception of the brand being advertised.
  • 45 percent found promoted tweets misleading, while 57 percent and 86 percent said the same about sponsored stories and video ads, respectively.
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  • There's no way to compare the results to people's views on standard banners, because Harris didn’t ask respondents about that format. It did, however, ask the same questions about infomercials and print advertorials, with similar results.
  • We’re not saying native doesn’t have a place in a marketing mix. We’re saying, that’s not the most effective way to build a brand.”
  • Of course, there are issues with self-reported surveys, especially one that requires participants to be honest about their views about something as divisive as advertising.
  • It’s also worth noting that Harris showed respondents generic examples of sponsored stories, not examples of actual sponsored stories people are served on their own Facebook news feeds, where the ads are aligned with their personal experiences and preferences.
  • “Engagement rates with sponsored stories are substantially higher than other ads on the site, and typically, [people] engage with things they find relevant and interesting,” Bruich said. “We do not see any evidence that they negatively impact people’s experience on the site.”
  • the results also conflict with joint research by Nielsen and Facebook that found that overall, social ads—those served to Facebook users whose Facebook friends are fans of, or interacted with, the advertised brand—generated a 55 percent lift in recall over non-social ads.
  • a new survey due out today by Harris Interactive for MediaBrix, a social and mobile ad firm, says otherwise. Harris asked online adults what they thought about three native ad formats—Twitter’s Promoted Tweets, Sponsored Stories on Facebook and video ads that appear to be content. According to the survey, a majority found the ads negatively impacted or had no impact on their perception of the brand being advertised.
  • People had the strongest reaction to sponsored video ads, with 85 percent saying they
  • negatively impacted or had no impact on their perception of the brand. Sixty-two percent said the same of Promoted Tweets and 72 percent of Sponsored Stories. The survey also revealed that 45 percent found Promoted Tweets misleading, while 57 percent and 86 percent said the same about Sponsored Stories and video ads, respectively.
Pedro Gonçalves

Mary Meeker's Latest Internet Trends Report: 5 Insights for Facebook Marketers - 0 views

  • There were 2.4 billion people on the internet at the end of 2012, up 8% from 2011.
  • While many Facebook advertisers justly focus on the US, UK and Western Europe, a lot can be said about considering other countries.  India, Indonesia and Brazil and Mexico are among the top 5 countries on Facebook according to Socialbakers.
  • Compared to TV, there is a significant discrepancy in the amount of time consumers spend on mobile devices relative to advertising spend.  While we spend 12 percent of our time on mobile devices, mobile advertising dollars only account for 3 percent of total spending.
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  • Advertising is a key way that Facebook will monetize its 751 million mobile users.   Earlier this year, the number of active daily visitors checking Facebook on mobile devices surpassed people checking the social network on the web.
  • Photos are still the most popular item of personal content that we share right now with nearly 550 million+ photos shared each day on various internet services and this is expected to double within the next 12 months.
  • Advertising in the News Feed has moved towards bigger pictures and richer media and it will continue to go in that direction.
Pedro Gonçalves

The New Mad Men Of Advertising Are... Everywhere - ReadWrite - 0 views

  • viewers place a higher level of trust in television advertisements. Even in the second decade of the 21st century, television ads influence viewers far more than most other forms. Yes, this is also true for tech-savvy teens and young adults.
  • sing Tongal's platform, big brands offer "challenge rewards" not only for fully edited video advertisements, but for ideas for commercials. 
  • Lego, Pringles, Axe, Pepsi, Nokia, and numerous others now rely upon crowdsourcing to generate ideas and foster new talent.
Pedro Gonçalves

Mobile Apps Are the New Network TV, Without the Ad Dollars - 0 views

  • audience for mobile apps has hit 58 million in primetime — 8 p.m.
  • The IAB estimates that the U.S. mobile ad market brought in $3.4 billion in 2012. The IAB didn't break out revenues for apps vs. the mobile web, but Flurry has estimated that 80% of mobile activity occurs on apps
  • Kantar Media calculated that TV advertising accounted for $74 billion in ad revenues in 2012. Even if apps generated 100% of mobile ad revenues, the market would still be just 4.5% that of TV.
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  • there are now more monthly users of mobile apps than there are for desktop computers and laptops. Yet the the desktop ad market is still 10 times the size of the mobile ad market in revenues
  • To execute a mobile ad buy, you have to choose between various networks and exchanges and real-time bidding platforms. The ads themselves are also different since they're often designed to prompt users to take action relatively quickly, which mean fewer branding ads and more direct-response executions. To ensure that the ads are effective, it helps to tailor to them to individual users' demographics and geographic location. To make things even more complicated, while on desktop, there are basically two operating systems, in mobile there are at least 10, Becker says and "hundreds of browsers and screen sizes."
  • eMarketer predicts that TV will continue to grow — and outpace digital advertising — through 2017.
  • TV ratings are down — Morgan Stanley analyst Benjamin Swinburne recently found that they fell 50% over the past decade — TV is still the last place where you can find 5 million or more people tuned in at the same time to an ad. You may be able to get in front of 5 million people on Facebook, but if you use a display ad, only about one in 1,000 people will click on it.
  • bigger advertisers are jumping into mobile — Mondelez (nee Kraft) pledged last year to put 10% of its ad budget into the segment
Pedro Gonçalves

Facebook Advertising Report: It's the Fan Engagement, Stupid - 0 views

  • traditional advertisers have treated Facebook and other social networks as traditional media: Something where a click should have a measurable return on investment. Advertisers who “get” social media understand that it's about strengthening relationships with their biggest fans, and hoping those fans can turn their friends onto the product as well.
  • The ComScore report is littered with the phrase “Fans and Friends of Fans,” signaling the strong emphasis successful brands are taking to cater to the people who can implicitly endorse them to others. If one of your friends is a fan of Starbucks, you’re more likely to be exposed to a Starbucks message on Facebook. And if you’re exposed to a Starbucks message on Facebook, you’re 38% more likely to make a purchase in the next four weeks.
  • too many brands, the report argues, still focus on accumulating the most number of likes instead of figuring out how best to engage those fans. It’s not to say that fan accumulation isn’t important; it is the crucial starting point. But too many brands treat it like an end game instead of a first step in getting to the real end game - the return on investment of time and money in building a social media presence.
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  • there is still no reliable way to measure the return on investment. Analytics companies are getting better at tracking whether engaged fans eventually make a purchase decision, but brands are still, by-and-large, forced to look at the number of clicks a brand page feeds to its website.
  • The report said the focus on click-through rates of display ads and brand pages on Facebook downplays the impact that has on a user's friends and followers.
  • “The idea behind amplification is that Fans who are reached with brand messages can also serve as a conduit for brand exposure to Friends within their respective social networks,” the report said. “Because the average Facebook Fan has hundreds of Friends, each person has the ability to potentially reach dozens of Friends with earned impressions through their engagement with brand messages.”
  • “While this research adds weight to the importance of social media, it also brings an important questions to the forefront – are the elevated spend levels among Fans and Friends of Fans the result of the messaging or a predisposition among these segments?
  • In other words, am I spending more at Best Buy because my friends like it, or because I hang out with people who are into tech gadgets? Am I 38% more likely to get coffee at Starbucks in the next four weeks because I saw a friend liked the brand on Facebook, or am I 38% more likely to get coffee at Starbucks because I run with people who like Starbucks - whether or not they choose to publicly declare so on Facebook?
  • Most likely, it’s a combination of both, as well as other factors including traditional advertising and proximity. In my case, I end up drinking more Starbucks than I’d like because it’s the only passable coffee shop within walking distance to my house. It’s a decision that I feel better about, perhaps because so many of my friends implicitly endorse Starbucks by liking the company on Facebook.
Pedro Gonçalves

They Work! Facebook Mobile Ads Are Clicked 13X More, Earn 11X More Money Than Its Deskt... - 0 views

  • TBG Digital’s CEO Simon Mansell tells me “this is huge news that show mobile is potentially going to be the big revenue driver that Facebook needs, especially because the usage in there.”
  • According to a new study by TBG Digital on 278,389,453 Sponsored Story ad impressions across 17 clients, mobile news feed Sponsored Stories (the only ads Facebook shows on mobile) have a stunning click-through rate of 1.14% at a $0.86 CPC. That means Facebook earns $9.86 per 1000 impressions (eCPM), and that could actually rise as more advertisers realize the power of mobile Sponsored Stories and compete for impressions there.
  • Compare those numbers to the desktop news feed Sponsored Stories that get a 0.588% CTR at $0.63 CPC and earn Facebook an eCPM of $3.72, and Facebook is getting 1.93x the CTR and earning 2.65x as much on mobile sponsored stories compared to what it makes on the web.
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  • And look at Facebook’s desktop ads as a whole, including both Sponsored Stories and the traditional sidebars ads. They’re getting just 0.083% CTR at a $0.88 CPC earning Facebook an eCPM of only $0.74, so mobile Sponsored Stories have 13.7X the CTR and earn Facebook 11.2x as much as its combined desktop ad offering.
  • Meanwhile, a quick look at a campaign in the tens of thousands of dollars by AdParlor showed that mobile ads have a CTR of 0.821% while traditional Facebook ad campaigns that mostly show up in the web sidebar with some presence in the web and mobile news feed had a CTR of regular ads have a CTR of just 0.032%. That’s a 25x better CTR on mobile. The campaign at gaining new fans for a Facebook page, and while the click-to-fan conversion rate on mobile was slightly worse – 55% on mobile versus 72% across placements – the improved in CTR makes up for it many times over.
  • Another Ads API giant Spruce Media told MediaPost that its tests with Facebook mobile sponsored stories have seen click-through rates from .8% to 1.7%, the same range as TBG Digital and AdParlor.
  • This all doesn’t seem like users are just clicking the relatively new, three month old ad units out of curiosity. It looks like users are actually perceiving them as content, and are clicking through to learn more about the Pages and apps their friends interact with.
  • Attaining such a high click-through rate for mobile Sponsored Stories is game-changing for Facebook, because there’s simply not as much room for it or any service to advertise on mobile. There’s no space for an ads sidebar and if far too many ads are injected into the content feed, users could get angry and stop browsing. But the impressively high CTR and eCPM mean Facebook doesn’t have to show too many Sponsored Stories to make a ton of money off of them.
  • Other social sites like Google+ and Twitter don’t have the scale, social graph, or on-site activity to serve Sponsored Stories that are as effective as Facebook’s. While Twitter and G+’s interest graph can power accurate ad targeting, only Facebook know who your closest friends are thanks to photo tags, wall posts, messages, and more. Its massive time-on-site also produces lots of interactions with brands and local businesses that can be turned into Sponsored Stories ads.
  • Facebook is just getting started. Sources say it’s working on a hyper-local mobile ad targeting product that could serve extremely relevant local business ads to users within a few hundred feet of a brick and mortar store. Thanks to the new Facebook Exchange real-time bidding system, Facebook could drive up CPC or CPM prices by getting advertisers to compete to reach specific mobile users, including ones who’ve been retargeted after visiting sites that indicate purchase intent.
  • High mobile Sponsored Story CTRs indicate at least some users don’t hate the ads, and wouldn’t rebel if they see more.
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