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Microsoft takes $6.2 billion charge, slows Internet hopes

Microsoft

Microsoft Corp admitted its largest acquisition in the Internet sector was effectively worthless and wiped out any profit for the last quarter, as it announced a $6.2 billion charge to write down the value of an online advertising agency it bought five years ago. The announcement came as a surprise, but did not shock investors, who had largely forgotten Microsoft's purchase of aQuantive in 2007, which was initially expected to boost Microsoft's online advertising revenue and rival Google Inc's purchase of DoubleClick.

 

Twitter's Mobile Ads Begin to Click

Twitter Mobile Ads

On most days, Twitter is now generating the majority of its revenue from ads shown to its users on mobile gadgets, rather than from ads on Twitter.com, company executives said. One key reason: People who see a Twitter ad on their phones are more likely to click or interact with it in some way, which is how Twitter gets paid for advertisements.

 

The Circle of Ads: Zynga Using Facebook Ads

When I first saw the headline “Facebook Places Ads on Zynga” on The Wall Street Journal, my mind almost fell into an infinite loop. You see, Zynga is already buying ads on Facebook to promote their games. I had thought that headline meant that Facebook is returning the favor by buying ads on Zynga to bring on more users.

Nope.Turns out Facebook is testing out their own ad network on Zynga. Yes, looks like Facebook will be launching an ad network to compete with Google’s Adsense.

 

Coke Sees a Plus In Advertising on Facebook

Coca-Cola's marketing chief, Joe Tripodi, said that advertising with Facebook probably helps drive sales. The comment marks a powerful endorsement at a time when some advertisers, such as GM, have expressed doubt about putting ad dollars into Facebook.

 

Facebook Readying Location-Based Mobile Ad Product

Facebook Inc., owner the world’s largest social network, says it’s working on a location-based mobile-advertising product that will allow companies to target users with real-time data showing their whereabouts.

 

Cuba's Next Step On Capitalist Road: Advertising

For decades there's been no such thing as a commercial radio or TV spot in Cuba. Ditto for billboards, website banner ads, and newspaper classifieds.

 

TiVo, PayPal to Enable Shopping Through Ads

Tivo Paypal Interactive Ads

TiVo is working with advertisers and agencies to develop PayPal-enabled commercials, allowing people to make instant purchases through interactive ads on their video recorders.

Senh: Now this is interesting: bringing interactive ads from the web to TV.

 

US Internet advertising spending hits $8.4B in 1Q

Advertising

An advertising industry group says revenue from Internet advertising in the U.S. hit $8.4 billion in the first three months of the year. That's the highest for the first quarter, up 15 percent from $7.3 billion in the same period last year.

 

Facebook: Our Ads Do Too Work-Just Like Any Others-And Here's Data to Prove It

Facebook Ads

Stung by claims in recent weeks that its advertising doesn’t work, Facebook is pouring on the public relations to insist that in fact, ads work just fine on the site. But while some of the claims of critics rest on shaky evidence, many questions about Facebook’s value as an advertising medium remain among the brands that constitute the bulk of all advertising online and off.

 

Facebook's Problem Is Its Low Click-Through Rate from Ads

Facebook

In light of Facebook’s disappointing IPO, I'll pull up an article I wrote in February, which said, “... social networks have always been poor at monetizing their traffic, and that hasn’t changed since they gain popularity. Click-thru rates for ads on social networks have always been really low, so they can’t charge nearly as much as Google per pageview. That hasn’t changed since social networks entered the internet landscape and won’t change in the future.”

 

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