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Why The Higher Click-Through Rates for Mobile Ads Which Facebook Touts Mean Nothing

Facebook

...There’s also the issue that these mobile ads are completely new. Users don’t know any better and happen to click on them. However, over time (and probably pretty quickly), they will learn to avoid these new ads. When banner ads began in the 1990s, CTRs over 5% were common. They are currently 0.2 – 0.3%.

 

Facebook sinks to record low as doubts grow

Facebook

A commerce site called Limited Run, in announcing that it was deleting its Facebook page, claimed that 80 percent of its ad-clicks on Facebook came from "bots" or automated accounts, and only a fifth from genuine users.

 

Maybe Social and Advertising Don't Play Nice Together

Facebook

Facebook’s results illustrated a reality for social media: It’s a soft sell medium in which advertising may not be that interesting or relevant to consumers. This is important because it means the revenue potential for social media companies such as Facebook may not be as high as many people assumed.

Senh: I've been preaching this since ... forever: "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."

 

Foursquare Launches First Revenue Product: Promoted Updates

Foursquare

Foursquare is rolling out its first revenue product as the company moves from focusing on user growth to generating cash. The new Promoted Updates enables businesses to send promoted content to users. These updates will appear at the top in a prominent position in the “Explore” tab in Foursquare. That’s the section of the app that is for users to find businesses nearby. The Promoted Updates, like Google search ads, there is “intent” there while users are looking for a restaurant, bar or other business nearby, says Steven Rosenblatt, Foursquare’s chief revenue officer. Businesses pay on a “cost per action” performance basis for these ads. In some ways these updates are also like Twitter’s promoted Tweets.

 

Can Tumblr’s David Karp Embrace Ads Without Selling Out?

The design of Tumblr, the blogging tool and social network, is guided by feeling. In particular, the feelings of David Karp, the company’s 26-year-old founder, whose instincts tend to run counter to current Web conventions. Tumblr does not display “follower” counts, for example, or other numerical markers of popularity that are viewed as crucial social-media features, because Karp finds them “really gross.” The culture of public friend-and-follow reciprocity that theoretically expands a social networking service can, in his view, “really poison a whole community.”

 

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.

 

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