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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

Here’s The Math Formula For Structuring A Groupon Deal That Doesn’t Lose Money (GRPN)

Source: http://www.businessinsider.com/heres-the-math-formula-for-structuring-a-groupon-deal-that-doesnt-lose-money-2011-12


groupon cupcake girl

We’ve all heard the nightmare stories about Groupon merchants who lost tons of money because they were suddenly overwhelmed with thousands of customers whom they were forced to serve at a loss: The British bakery that made 102,000 cupcakes. The Irish hairdressers whose customer base now consists entirely of people who only want their hair cut a discount. The Portland cafe that lost $8,000 because the owner failed to cap the number of deals she offered.

It’s not just Groupon, of course. There are loads of other daily deal sites — Living Social, Thrillist, Google Offers, etc — but they all present merchants with the same problem: The conflict between offering below-cost deals to customers in hopes of attracting long-term “regulars” and structuring a deal so that you can still make a profit. The math can be tricky because merchants have to account for two different sets of discounts: The discount to the customer and share of the payment taken by the daily deal site for publicizing the offer.

Now TheDealMix, a site that aggregates daily deals into an impressively complicated map of your neighborhood, has produced an infographic that can help businesses calculate daily deal offers so th! at they won’t accidentally go bankrupt.

And, yes, The DealMix has presented its formulas in the form of cupcakes — particularly useful given the number of bakery-related Groupon disasters that have made the headlines.

The formulas include:

Offer Price – Cost of Goods > $0

Average Customer Spend – Value of Offer + Price > Cost of Goods



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Monday, December 12th, 2011 news No Comments

Watson now hunting down patent trolls, plans Ken Jennings’ elaborate demise

Source: http://www.engadget.com/2011/12/09/watson-now-hunting-down-patent-trolls-plans-ken-jennings-elabo/

The Watson supercomputer used its speech recognition, natural language processing, machine learning and data mining abilities to crush puny human Ken Jennings’ dreams of winning at “Jeopardy!”, but now Big Blue has it chasing down medical patent trolls for fun. Incorporating the Strategic IP Insight Platform, IBM has now programmed Watson to scan millions of pharmaceutical patents and biomedical journals to discover, analyze, and record any info pertaining to drug discovery. SIIP can then look for the names of chemical compounds, related diagrams, the company and scientist who invented and works with the compounds and related words to determine a patent’s rightful owner. The SIIP function can also highlight which patents could be targeted for acquisition by trolls looking to control a property via a lawsuit or licensing agreement. Click past the break for a video outlining the project, along with Watson’s announcement of its engagement to “Skynet“.

Continue reading Watson now hunting down patent trolls, plans Ken Jennings’ elaborate demise

Watson now hunting down patent trolls, plans Ken Jennings’ elaborate demise originally appeared on Engadget on Fri, 09 Dec 2011 05:20:00 EDT. Please see our terms for use of feeds.

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Friday, December 9th, 2011 news No Comments

This Bakery Had To Make 102,000 Cupcakes Because Of A Groupon Deal And Lost A Ton Of Money

Source: http://www.businessinsider.com/london-baker-makes-102000-cupcakes-groupon-deal-2011-11


need a cake bakery

A London bakery recently experienced the worst-case scenario of offering a Groupon for a small business, and it cost the owner thousands (via NBC Chicago).

Need a Cake bakery owner Rachel Brown decided to put up a 75% discount on a dozen cupcakes on the site, which dropped the price down to $10 from $40.

Apparently, people really love getting cupcakes cheap, because she was rushed by throngs of customers in a cupcake frenzy. 8,500 people signed up, and her crew of eight had to make 102,000 cupcakes to meet the orders.

Brown lost $3 per batch because she had to hire 25 extra workers to help, and she ended up losing $20,000 because of it, which a ton for a small biz. It wiped out her profits for the year, reports the Daily Mail.

“Without doubt, it was my worst ever business decision,” she told the BBC. “We had thousands of orders pouring in that really we hadn’t expected to have. A much larger company would have difficulty coping.”

This is just the latest in Groupon small business horror stories. A story popped up in September about a Portland cafe losing $8,000 because of a Groupon, which prompted a personal letter from founder and CEO Andrew Mason.

It brings up the always-present question about the daily deals site: does Groupon suck for small businesses?

Well, it looks like most small businesses think so. An overwhelming majority of 70% hate Groupon, if the latest survey from iContact is to be believed.

As for Brown and her bakery, the experience may have cost her 20 grand, but what about all the exposure she’s getting for her store? Great, right? It doesn’t hurt, but it probably wasn’t worth the cost.

Small businesses like this bakery thrive on relationships with their local customers, not crowds of outsiders coming in to snatch up a free lunch.

Getting new customers is great, but in this case, the bakery rewarded the wrong customers. Those 8,500 people that rushed for the Groupon probably won’t be coming back to pay for the same cupcakes at quadruple the price.

Only those the store has nurtured relationships with for a long time (in Brown’s case, 25 years), should be the ones rewarded. They’re the ones that keep coming back for more.

NOW SEE: The 10 Largest Family Businesses In The US >

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Tuesday, November 22nd, 2011 news No Comments

iPhone OS Still Triples Android’s Market Share

Source: http://gizmodo.com/5556346/iphone-os-triples-androids-market-share-for-now

iPhone OS Still Triples Android's Market ShareNielsen’s new “iPhone vs. Android” report offers up the latest numbers in the big mobile battle: Both platforms have loyal users, but Apple’s still on top by a long shot.

They don’t come as much of a surprise, but with all the talk of Android’s surging popularity and explosive app growth, Nielsen’s numbers do serve as a reminder that Apple still has a comfortable lead. Versus Android, that is—nationally, the iPhone’s still in second place, with a 28% market share compared to RIM’s 35% (Android has 9%; Windows Mobile has 19%).

But it will be interesting to see how things shake out over the course of the year. With the new iPhone dropping in a matter of weeks, prospective smart phone buyers (23% of U.S. mobile customers now have them) will be faced with the choice of hopping on the Apple wagon or exploring the multitude of Android options. As Matt noted in his Froyo review, Android is as polished as it’s ever been and is likely to improve even more in coming months. And while it’s hard to top the iPhone hype machine, reception to early versions of iPhone OS 4 hasn’t exactly been rapturous.

iPhone OS Still Triples Android's Market Share

Another Nielsen graph shows that both platforms enjoy loyal users—80% of iPhone users want another iPhone; 70% of Android users want another Android phone—with Android’s group slightly more curious about the iPhone than the other way around. But in my experience, it seems like things are trending to the opposite. With Android’s app offerings increasingly matching up with the iPhone’s, I’m seeing more and more people considering Android a viable option for themselves, as well as one they can recommend to others.

Though still on top, Blackberry’s loyalty is only 47%, and as current Bold owner, I’m definitely of the 53% that’s planning on jumping ship when it comes time to buy my next phone. I’m just not sure what ship I want to jump into. [Nielsen via CNET]

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Monday, June 7th, 2010 news No Comments

Mark Cuban foretells Netflix demise, sees a future filled with on-demand video

Source: http://www.engadget.com/2010/05/07/mark-cuban-foretells-netflix-demise-sees-a-future-filled-with-o/

To call Mark Cuban eccentric would be akin to describing the ocean as wet, but what’s not so often acknowledged about the Dallas Mavericks owner is the sharp mind and commercial nous that have gotten him to the position of hiring and firing millionaire ball players. One of Mark’s recent blog posts, entitled “The future of TV … is TV,” got the attention of NewTeeVee, who sought to debunk his contention that VOD (video on demand) services from cable operators would become the primary means by which we consume digital media in the future. They cite the growing success story of Netflix’s digital distribution model, as well as the 12 million hours of March Madness video consumed via CBS’ web portal, in arguing that web streaming is indeed the great new hotness.

Mark’s response tackles Netflix head on, and points out that the company’s rapid growth is about to start working against it, with movie studios and other content providers likely to jack up prices and demand further concessions from the streaming service as it turns into a real competitor to cable companies. According to him, Netflix is presently getting its content at prices that are unsustainable, and his prognostication is that content owners seeking bigger levies — together with the expansion of VOD choice, which he sees as foolproof compared to the overwhelming complexity that web streaming entails — will lead to Netflix passing costs on to the consumers and losing out to cable operators. Irrespective of whether you agree with him, the whole exchange is well worth a read. Use the links below to get filled in.

Mark Cuban foretells Netflix demise, sees a future filled with on-demand video originally appeared on Engadget on Fri, 07 May 2010 10:09:00 EST. Please see our terms for use of feeds.

Permalink CNET  |  sourceBlog Maverick, NewTeeVee (1), (2)  | Email this | Comments

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Friday, May 7th, 2010 news 1 Comment

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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