BILLION

Source: http://gizmodo.com/5943458/zuckerberg-rambling-about-nothing-for-30-minutes-earned-facebook-7-billion

Zuckerberg Rambling About Nothing for 30 Minutes Earned Facebook $7 BillionDo you want to know what power is? Power is going up on a stage, yammering about very little for half an hour, and boom, a few days later your company is worth nearly $7 BILLION more than it was a few days ago.

On Tuesday, Zuck took the stage at geeky strokefest TechCrunch Disrupt. He talked about ads, manically about the company’s high morale, the (obvious) disappointment of the IPO, his commitment to connecting the world, his regrets about HTML5, the importance of mobile, (obvious) denials of a Facebook Phone, and other non-statements. It was poised hot air.

“Whatever,” said people with money, and then proceeded to throw great wads of cash in the 28-year-old CEO’s direction. At the close of Friday’s trading Facebook’s value was up roughly 15 percent from where it was on Tuesday, bringing the stock’s price to $22 per share. Yes, that’s still long ways off from its (crazy) IPO price of $38 per share, but let’s put is this way: Zuck netted his company almost four million dollars per second that he spoke.

If I could do that I’d never shut up. Zuck should try releasing a crooning jazz album just to see what happens. [Reuters]

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Sunday, September 16th, 2012 Uncategorized No Comments

Facebook Stock Crash Hoses California’s Tax Revenue

Source: http://www.businessinsider.com/facebook-stock-crash-hoses-californias-tax-revenue-2012-8

california foreclosure map

Well, the hits from the Facebook stock implosion keep coming.

Now, it’s the State of California, which apparently overestimated how much tax revenue it was going to collect from Facebook employees after the IPO.

According to Bloomberg’s John Erlichman, California is now saying its “tax revenue is at risk” because it assumed it would get $1.9 billion from newly enriched Facebook employees.

But now those Facebook employees are only going to get about half as rich as they would have if the stock were still trading at the IPO price.

And that means that California–and the Federal government–are likely to collect only about half as much Facebook-related tax revenue as they thought.

SEE ALSO: No, Facebook Is Not Valued At $40 Billion–Google And Yahoo Finance Are Wrong

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Thursday, August 2nd, 2012 news No Comments

I Really Want to Drink This Wine Aged with a 4.5 Billion-Year-Old Meteorite [Booze]

Source: http://gizmodo.com/5878273/i-really-want-to-drink-this-wine-aged-with-a-45-billion+year+old-meteorite

I Really Want to Drink This Wine Aged with a 4.5 Billion-Year-Old MeteoriteI’m not that big a fan of the vino but I really want to drink the Cabernet Sauvignon from Ian Hutchinson’s vineyard in Chile’s Cachapoal Valley. Why? Well, for some reason, it’s aged with a three-inch, 4.5 billion years old meteor from the asteroid belt between Mars and Jupiter. SPACEWINE.

The meteorite hit Earth around 6,000 years ago and sits with the Cabernet in a wooden barrel for 12 months. I’m not sure my unsophisticated tastes could discern any sort of flavor from the meteorite but Hutchinson claims the rock gives the wine a “livelier taste”. Whatever it is, it’s always awesome to get drunk from something that doesn’t exist on this planet. Or always awesome to find new excuses to get drunk. [Discovery News via Foodbeast]


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Monday, January 23rd, 2012 news No Comments

I Really Want to Drink This Wine Aged with a 4.5 Billion-Year-Old Meteorite [Booze]

Source: http://gizmodo.com/5878273/i-really-want-to-drink-this-wine-aged-with-a-45-billion+year+old-meteorite

I Really Want to Drink This Wine Aged with a 4.5 Billion-Year-Old MeteoriteI’m not that big a fan of the vino but I really want to drink the Cabernet Sauvignon from Ian Hutchinson’s vineyard in Chile’s Cachapoal Valley. Why? Well, for some reason, it’s aged with a three-inch, 4.5 billion years old meteor from the asteroid belt between Mars and Jupiter. SPACEWINE.

The meteorite hit Earth around 6,000 years ago and sits with the Cabernet in a wooden barrel for 12 months. I’m not sure my unsophisticated tastes could discern any sort of flavor from the meteorite but Hutchinson claims the rock gives the wine a “livelier taste”. Whatever it is, it’s always awesome to get drunk from something that doesn’t exist on this planet. Or always awesome to find new excuses to get drunk. [Discovery News via Foodbeast]


drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

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Monday, January 23rd, 2012 news No Comments

the economics of advertising sucks, but it will suck a lot more soon

it’s a simple matter of supply and demand. Let’s do a thought exercise.

1.  eMarketer forecasts that retail e-commerce will grow roughly 10% per year for the next few years. This means that the total “pie” of people spending online will only grow by an average of 10% per year. Note that sales is (or should be) the goal of advertising. So that’s why we are looking at e-commerce sales and comparing it to online advertising because both are completed in the same medium and we can eliminate cross-media uncertainties and breakdown of tracking.

e-commerce

2. online advertising is still exploding with trillions of pageviews per month, thanks to social networks which throw off ungodly numbers of pageviews when people socialize with others. The Compete chart below shows the top social networks which rely on banner advertising (impression-based advertising) to make revenues. Notice that just Facebook and Myspace alone generate 115 BILLION pageviews a month. And if you consider that Facebook shows 3 ads per page, that would be 250+ BILLION impressions per month served by Facebook alone. Furthermore, the rate at which pageviews grow is 250% – 1,000% per year, depending on the site in question.

pageviews

3. In the online medium, we have end-to-end tracking from the advertising (banner impression) through to the sale (e-commerce). The banner is served (impressions); a percent of users click on it to go to a site (click through rate – CTR); a percent of those make their way through the site and end up completing a purchase online (conversion rate). Those users who are looking for something and who are considering buying something will be online searching and researching. Those are the ones who are likely to click on banner ads, compared to others who are online to do something else, like write email, socialize with friends, etc.  And if the purchase is their ultimate end-goal (to make a purchase) we have a farily reliable indicator of the growth in not only such interest but also the completion of the task — namely, e-commerce, which grows at 10%.

4. Now, if the number of people who will click grows that 10%, but the number of advertising impressions grows at a slow 250%, the ratio of clicks to impressions drops dramatically because the denominator is growing 25X faster than the numerator. Serving more ads simply will not get the amount of e-commerce to grow significantly faster. The point of diminishing returns has been reached and passed, so incremental ad impressions are ignored and useless. The number of people who will end up buying will not increase significantly faster. And given the tough economic climate the amount of sales may actually decline before it goes up again.

5. If we generalize this back to all retail commerce, it grows at an EVEN slower pace than ecommerce. When you compare this to the dramatic increase in ad impressions and the shift from traditional channels (TV, print, radio – whose impressions and audience sizes are dwindling) to online channels (portals, news sites, social networks – whose impressions and audience sizes are skyrocketing) again the ratio of sales to available advertising drops dramatically. This is a measure of the effectiveness of advertising (sales  divided by advertising spend). It was already small — it sucked — and it will get dramatically smaller soon — it’ll suck more soon.

A way to mitigate this “sucking” is to peg advertising expenditures on a success metric which is an indicator of user intent — cost per click — versus a traditional indicator of reach and frequency — ad impressions served — which from the above is NOT an indicator of consumers’ intent to purchase.  This way, advertisers only pay when someone clicks. Those “someones” click when they are looking for something and are more likely to complete a purchase than those who don’t click.

“CPC banner advertising” anyone?

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Sunday, March 15th, 2009 digital No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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