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Amazon Launches An Ad Exchange To Rival Facebook And Google (FB, GOOG, AMZN)

Source: http://www.businessinsider.com/amazon-launches-an-ad-exchange-to-rival-facebook-and-google-2012-12

Jeff Bezos

Amazon has created a real-time bidding ad exchange, according to Adweek, putting it in a head-to-head battle with Facebook and Google for so called retargeting dollars.

Here’s how it will work: If you’re browsing on Amazon but decide not to buy that DVD of “Star Wars,” Amazon will drop a tracking cookie on your browser. When you go elsewhere in Amazon’s exchange network — which includes Amazon, IMDb, DPReview, and various ad exchanges and publishers that Amazon has a relationship with — you might see an ad pop up offering you another chance to buy “Star Wars.”

It’s pretty much exactly what Facebook has done with its FBX RTB exchange. Some analysts believe that Facebook may be able to generate $1 billion a year from FBX.

The advantage Amazon will have, however, is that it can use its vast trove of shopping data to target users with ads based on their purchase histories. Neither Facebook nor Google (which also does RTB retargeting via DoubleClick) can do that. Adweek says:

The self-serve RTB platform would hypothetically function similarly to Facebook’s Ads Manager in terms of how buyers could target their ads. Sources said Amazon is extremely protective of its data and wary of providing outside access, so like Facebook, Amazon’s platform would enable buyers to create targeting segments such as “men; aged 25-34; in Califo! rnia; in terested in high-definition TVs; who have purchased how-to books and home improvement tools.” But Amazon is not about to hand over its customer’s names or individual buying histories.

The three giants — Amazon, Facebook and Google — now face off in RTB like this:

Amazon: Owns the best database of actual shopping history and purchases. This type of data is like gold for advertisers. Clients have long awaited the day when “the sleeping giant,” as it is known in the ad biz, finally wakes up to advertisers. That day has dawned, it seems.

Facebook: Owns the best database of personal information about consumers. 1 billion users strong, with all their interests and friends, it’s terrifically useful stuff for marketers.

Google: Has traditionally dominated the “purchase intent” sector of the category. When people search for “Star Wars DVD” online, that’s a pretty good indicator they want to buy said movie. Google has been serving ads (and retargeting ads) against such requests for years. But its data on shoppers and their histories has never been as good as Amazon’s or Facebook’s.

Disclosure: The author owns Facebook and Google stock.

SEE ALSO: ANALYST: Facebook Is Generating $1 Billion A Year From Its Ad Exchange

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Friday, October 12th, 2012 news No Comments

In-Store Product Research Influences Most Smartphone Owners

Source: http://www.marketingcharts.com/wp/interactive/in-store-product-research-influences-most-smartphone-owners-decisions-23300/

14% of American smartphone owners who have scanned or texted for product information while in-store say they made an unplanned purchase as a result, according to [download page] a September 2012 report from Vibes. Yet, an almost equal proportion (15%) report being dissuaded from making a purchase. Still, a plurality say that the product information [...]

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Wednesday, September 12th, 2012 news No Comments

It Now Costs Nearly $450 For A Family Of Four To Attend An NFL Game

Source: http://www.businessinsider.com/sports-chart-of-the-day-it-now-costs-nearly-450-for-a-family-of-four-to-attend-an-nfl-game-2012-9

If a family wants to attend an NFL game this fall, it will cost them $443.93 according to Team Marketing Report’s “Fan Cost Index.” The FCI is based on the average cost for a family of four, including the purchase of “four non-premium tickets, two beers, four soft drinks, four hot dogs, parking, two programs and two adult-size hats.”

This year’s average cost is up $16.51 (3.9%) from last year and up $76.62 (20.9%) since 2007. However, if we look at inflation-adjusted prices, the cost of an NFL game has been relatively unchanged since 2009.

Here are the year-by-year costs…

NFL Fan Cost Index

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Wednesday, September 12th, 2012 news No Comments

Uh Oh! Amazon Researchers Say Pinterest Doesn’t Generate A Lot Of Sales (AMZN)

Source: http://www.businessinsider.com/zappos-labs-pinterest-monetize-2012-8

Zappos Pin Pointing

Zappos Labs, the research arm of the Zappos online apparel site, has been experimenting with Pinterest—and the results are not encouraging.

Will Young, director of Zappos Labs, told Bloomberg that Pinterest users are far more likely to share a purchase than Twitter or Facebook users—but that shared items generate far less revenue than Twitter or Facebook.

This is a big problem for Pinterest, because the whole idea of the site is that it’s supposed to be better at monetizing social activity than Twitter or Facebook.

Young told Bloomberg that Zappos customers were 13 times likelier to share an item they bought with friends on Pinterest than on Twitter, and 8 times likelier than on Facebook.

But a post on Twitter generated far more revenue—$33.66 an order—than Facebook, at $2.08 an order, or Pinterest, at 75 cents an order.

That’s great news for Twitter, which will surely tout these figures as it makes a push for retail advertisers.

But it’s kind of bad news for Pinterest, which recently raised $100 million at a $1.5 billion valuation on the premise that its site—which is all about sharing beautiful images of things to buy—should be good at this kind of social commerce.

It’s not great news for Facebook, either, which has ambitions to make commerce a bigger part of the site than it is today.

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A Pi nterest spokesperson whom we alerted to the study promised to look into it. We’ll update if we hear more.

One note: Amazon owns Zappos and Amazon.com is a rival of Rakuten a Japanese e-commerce giant that is also is an investor in Pinterest.

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