generator

Facebook Just Launched ANOTHER New Revenue Stream, Goes After Groupon (FB)

Source: http://www.businessinsider.com/facebook-offers-ads-are-no-longer-free-2012-9

mark zuckerberg, disrupt 2012,

Facebook Inc said it will start charging businesses to run Offers on its social network, turning a previously free service into a potential revenue generator at a time when Wall Street is demanding new sources of growth and profit from the company.

Facebook launched Facebook Offers earlier this year, letting retailers and other local merchants send deals to their Facebook fans.

Users claim the offers from their News Feeds and redeem the vouchers at stores to get discounts.

The service has been free, but in coming weeks Facebook will require merchants to pay at least $5 on related ads to promote each Facebook Offer to a targeted audience of fans and friends of fans. The cost will vary based on the size of a company’s Facebook pages.

Since Facebook went public in May, the company has been under pressure from Wall Street to show how it can turn its giant social network into a money machine. Facebook shares have lost about 40 percent of their value since the IPO.

The commerce potential of Facebook, known as f-commerce, has yet to materialize, partly because retailers have been able to feast on a host of free tools on the social network to attract customers.

Tying Facebook Offers to a paid ad service suggests the company is working to change this.

“We think this aligns incentives nicely,” said Gokul Rajaram, director of product management for Facebook’s advertising and Pages businesses. “The best results on Facebook Offers will come from organic distribution plus paid distribution.”

In the past, some Facebook Offers have not been relevant to all users, partly because some people saw deals in their News Feeds from merchants located far away from where they live, Rajaram ad! ded.

“The requirement to pay for related ads will focus merchants on who and where they want the offer to reach,” he said.

Facebook is also expanding Offers to online-only businesses, he added. Before, the service was available only to merchants with physical locations.

Facebook is also adding barcodes for offers, so customers can redeem offers more easily. The barcodes work globally, Rajaram noted.

The executive declined to disclose how many Facebook Offers have been run so far, how many merchants have taken part, or how many deals have been claimed and redeemed by consumers.

However, he said Facebook is “very happy” with the success of its Offers business.

“That’s why we’re expanding and investing more in it,” Rajaram said.

(Reporting by Alistair Barr and Alexei Oreskovic; Editing by Phil Berlowitz)

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Thursday, September 20th, 2012 news No Comments

Facebook’s Magic Number 16%

Source: http://www.businessinsider.com/facebooks-entire-brand-advertising-business-boils-down-to-one-number-16-2012-3

 

Sheryl Sandberg at Facebook

One secret reason why Facebook ad revenues haven’t quite taken off like they should – and are, in fact, decelerating – is that for years now, brands have advertised on Facebook without paying Facebook.

Here’s how they’ve been doing it:

  • Brands build a “page” on Facebook.
  • Facebook users become “fans” of that brand page, thanks in part to ad campaigns off Facebook.
  • The brands post video, photos, or text to the page.
  • That content goes into fans’ News Feeds.
Yesterday, in front of more than 1,000 advertising executives here in New York, Facebook announced a new ad product it hopes will finally convince brands to do more than use Facebook’s free features.
The pitch boils down to a number: 16%
When a Facebook page owner posts a piece of content to their page, and that content gets disperse red into the News Feeds of that page’s fans, only 16% of those fans will actually see that piece of content.
Facebook’s new ad product, called Reach Generator, is supposed to take that number, 16%, and push it toward 100%. Test campaigns pushed it past 95% in some cases.
Basically, when a brand buys into a Reach Generator campaign, Facebook will push posts from that brands page into its fans’ News Feeds, mobile News Feeds, and log-out screen until almost all of that brand’s fans see it.

 

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Thursday, March 1st, 2012 display advertising No Comments

Facebook Will Show Ads To Its 425 Million Mobile Users

Source: http://www.businessinsider.com/finally-facebook-will-show-ads-to-its-425-million-mobile-users-2012-2

 

facebook phoneFacebook had more than 425 million mobile users in December. So far, it makes zero money from those people.

That’ll change soon.

Today Faceobok announced that a new ad unit – called Reach Generator – will take posts from brand pages and stick them in users news feeds on the desktop AND on mobile.

Consider one big hole in Facebook’s business closed.

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Wednesday, February 29th, 2012 news No Comments

Facebook Owns 95% Of Social Networking Time

Source: http://www.businessinsider.com/chart-of-the-day-facebook-owns-95-of-social-networking-time-2011-12


Facebook accounts for 95% of social networking time on the web in the U.S. according to an analysis of comScore data provided to us by web publisher Ben Elowitz of Wetpaint.

(We would think this holds for mobile, but it’s possible Twitter has more of a hold there than on the desktop.)

Elowitz’s takeaway from the data: “There’s now no question that ‘social’ means ‘Facebook.'” And if you want to be in front of consumers, you have to figure out a way to be in their Facebook news feed.

This is important for Facebook, since it just announced plans to insert ads into users news feeds. If publishers agree with Elowitz, then it could be the big revenue generator Facebook needs to sustain itself for the next ten years.

chart of the day, minutes spent on social newtworking sites, dec 20 2011

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Tuesday, December 20th, 2011 news 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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