Facebook Q3 2013: $2.02 Billion, Mobile Generating Half Of Ad Revenue

facebook This afternoon Facebook announced Q3 2013 earnings. Revenue was nearly $2.02  billion, up 60 percent year over year (YoY). Both revenues and earnings beat financial analysts' consensus estimates. Growth was strong virtually across the board. Facebook's stock is up in after-hours trading. Facebook advertising revenue was $1.80 billion for the quarter. That was a 66 percent increase over Q3 2012. Significantly, mobile delivered nearly half (49 percent) of Facebook's ad revenue in Q3. That's up from 41 percent last quarter. Facebook said that in September it had 728 million daily active [...]


Forrester Research Disses Facebook To Generate Coverage, Controversy

facebook By now you've read or seen coverage of Forrester Research's "open letter to Mark Zuckerberg." A raw PR stunt, the letter is partly intended to generate controversy and exposure for the firm. And in that sense, it appears to have succeeded. The Forrester analyst who wrote the letter, which carries a dismissive and arrogant tone, uses survey data to argue that Facebook is failing marketers: First, your company focuses too little on the thing marketers want most: driving genuine engagement between companies and their customers. Your sales materials tease marketers with the promise that you’ [...]


Quantifying The Reach-Efficiency Tradeoff In Facebook Advertising

Any marketer that has tried running paid advertising campaigns on Facebook knows it is one of the most complex auction-based ad marketplaces that exist today. Constantly moving targets, rapid ad fatigue, and lack of transparency around the effects of bids and budgets on performance make it difficult to optimize these campaigns. However, sophisticated optimization strategies are impossible without understanding the mechanics of how ads are served on Facebook. To this extent, we examined performance of over 500 Facebook ads over a 3-month period in order to shed some light on how the Facebook [...]


Facebook Opening Access To Custom Audiences For All Advertisers By End Of November

Facebook for Business Facebook announced today it will open access to its Custom Audiences ad targeting tool to all advertisers by late November. The feature will begin rolling out today for a limited number of US advertisers, with a global roll-out starting next week. Before today, Facebook's Custom Audiences was only available through its API and Power Editor tool. Soon, all Facebook advertisers will be able to leverage Custom Audiences to find existing customers and reach new prospects: Small businesses in particular will now be able to use their current customer lists to reach people on Facebook. And, for t [...]


Facebook’s First Video Ads Are Coming To Mobile

facebook-mobile-video-ads If you use Facebook on your favorite Android or iOS device -- and by Facebook's count, about 70 percent of us do -- you'll soon start seeing video ads in your News Feed. The company announced today that app developers can use videos in ads that are aimed at driving new app installs. Despite previous reports, it doesn't appear that the video ads will be set to auto-play. Here's how Facebook's Radu Margarint describes the new ads, and note the explicit mention of users clicking the ads to see the video: Potential customers will be able to click play to watch a video featuring your mobile app [...]


When Pigs Fly: Why Facebook And Google Are Becoming Ad Partners

google-facebook-pigs-fly-featured You may have raised your eyebrows at last week's announcement from Google that it is partnering with Facebook to offer its clients access to Facebook Exchange (FBX) inventory through DoubleClick Bid Manager. Two competing online ad giants entering into a partnership? Why would Facebook finally want to open up to Google, and why would Google want to sell Facebook inventory? After all, Google took over the top spot in digital display revenue from Facebook last year, according to eMarketer. That same study estimates Google's display ad revenue share will continue to grow at a solid clip from 1 [...]


Google’s DoubleClick To Offer FBX Ad Inventory In Coming Months

DoubleClick Campaign Manager DoubleClick, Google's online advertising solutions company, announced today it will be extending its advertising services to include ads on FBX, Facebook's real-time bidding exchange. According to the announcement, DoubleClick clients will be able to buy ad inventory on FBX via the DoubleClick Bid Manager, "in a few months." DoubleClick claims access to dozens of private and public exchanges in more than 75 countries, and says it continues to experience double-digit quarter-over-quarter growth in spend, with Q3 2013 representing its biggest quarter ever. [...]


Facebook Buys Israeli Mobile Analytics Company Onavo

Onavo Facebook has acquired Israeli startup Onavo. TechCrunch first reported the news, which was confirmed by a company blog post. The acquisition price wasn't announced but speculation puts it between $150 and $200 million. There are essentially two aspects to Onavo: consumer-facing apps that help users manage data and save money and an app-analytics business. The company's consumer-facing apps have been around since 2011. They compress data to make plans go further; they also provide visibility on data usage to mobile subscribers: By compressing your data, Onavo Extend can increase the power o [...]


Focusing On “Objectives” Facebook Simplifies Ad Creation, Measurement

facebook In June of this year, Facebook announced that it would overhaul and dramatically simplify the process of buying ads on the site to eliminate confusion. Today, Facebook is taking a major step in that direction. The company is announcing a redesign of its ad creation/buying and reporting tools. Rather than asking users to select a particular an unit, the company now will provide a list of objectives and take marketers through a flow based on the objective selected. The following are the available marketing objectives: There are no offline events (e.g. store visits, coupon redemptions) [...]


Mobile And The Rise Of “Real World Analytics”

Google indoor maps The new reality of multi-screen conversions compounds the already difficult challenges of accurate attribution and ROI calculation. That's on top of the persistent but largely ignored fact that most internet-influenced consumer spending happens offline. Digital marketers have mostly avoided trying to account for offline conversions in the past because they've been so hard to track on a per-campaign basis. Yet e-commerce is still only about 6 percent of overall US retail (billions vs. trillions). By contrast online-to-offline spending is at least 10x the value of e-commerce. Now, the awar [...]


Report: Facebook To Start Giving Social Data To TV Networks

facebook-tv-featured Facebook is set to start giving data to TV networks showing how much activity about their programs is happening on the world's biggest social network. The Wall Street Journal is reporting that the data will be basic, at least in the beginning, with networks learning how many Facebook users liked, shared or talked about individual shows and how many updates/interactions were made. In the future, Facebook wants to include things like how many users saw those updates. For Facebook, it's another attempt at keeping up -- or perhaps catching up would be more accurate -- with Twitter, which is [...]


Facebook Users Will Soon Have More Control Over The Ads It Displays

Facebook-Like Facebook announced it is making changes to the ads algorithm to improve the relevancy of ads in users' news feeds. The algorithm determines what ads to show Facebook users. What's changing? The company says it is putting greater emphasis on feedback from users about the ads they see. When users report or hide ads, they'll be less likely to see similar ads in their news feeds. This should give users more control over the types of ads that show up in their news feeds and mean that the ads are more relevant to their interests. As an example, if a user always hides ads for electronics, Faceb [...]


Facebook Connects Impressions To Offline Sales For Telcos

facebook-mobile-phones-featured The future of digital advertising and marketing increasingly involves "closing the loop" between online ad exposures and offline sales. The days of the "click" are numbered. Mobile payments early on held this promise. However mobile payments haven't yet taken off (see Google Wallet). But that hasn't stopped Google, Facebook, Twitter and others from developing methodologies to measure or model the actual sales impact of online ads. The momentum toward connecting the dots between digital ads, store visits and offline sales continues to build. A case-in-point is yesterday's Facebook announc [...]


Facebook Advertiser Banned For Using Photo Of A Teen Who Recently Committed Suicide

facebook Rehtaeh Parsons was a 17-year-old Canadian woman that passed away due to complications of an attempted suicide on April 7th this year. She was allegedly raped by four boys then cyberbullied and harassed up until her suicide attempt. The silver lining of the occurrence is that in passing she helped to change Canadian law for the better. After her death, an act was approved that allows victims of cyberbullies to protect themselves and to even sue their perpetrators. If you were a Canadian Facebook user, however, you may have seen imagery of her -- not for the change that she helped bring abou [...]


Report: Facebook’s Promoted Posts Won’t Cannibalize Organic Reach (Even If They Are Terrible)

Organic-Vs-Promoted Last Spring, the launch of Facebook's Promoted Posts launched, garnering mixed reviews from brands. Since launch, some speculation has been swirling that paying for promotion might hinder the organic reach of a brand. he thought process is that a promoted post that is lower in quality that may not be regularly shown to that user, thereby garnering more negative  feedback, lowering the overall organic reach metrics. Wisemetrics, a social analytics firm, performed a study to find out a that found that this is not the case. In a study that analyzed 5,000 promoted posts from 1,500 pages Wiseme [...]


Facebook Rolls Out Bigger, Uniform Image Sizes And Larger Canvas For All Ad Formats

facebook Today, Facebook announced a follow-up to its efforts to streamline ad units that the company announced in June. This update puts the focus on making the images more prominent and engaging. Images will be bigger and, in a nod to simplification, ad specifications will be consistent across ad placements. Advertisers will no longer need to upload multiple image sizes for different placement types. The ad canvas area is also increasing with this update. Joe McCormack, CEO of Adquant, one of Facebook’s first Preferred Marketing Developers (PMD), says of the updates, "The new ad formats are v [...]


Instagram Ads Coming, Seeks To Avoid Facebook’s Missteps

instagram-logo-200px Ads are coming to Instagram next year. That fact is confirmed in a Wall Street Journal article that offers a profile of Facebook's Emily White (now Director of Business Operations at Instagram) in which the subject of advertising on the app is broadly discussed. The piece conveys that she's functioning as the Sheryl Sandberg of Instagram, the effective COO. She's been asked to develop a business and monetization plan that doesn't alienate Instagram's legion of teen and tween users. There are scores of companies and brands already using the site as a promotional tool now. The question for [...]


Fowl Play: Facebook Bans ‘Booby’ Nature Campaign

Booby If you were a resident of the birdwatching mecca of Christmas Island, a "booby" would mean one thing - a bird. The Booby is a seabird that hunts by diving into the water and catching sea life. However when the Christmas Island Tourism Association began running Facebook ads for the upcoming 'Bird'n'Nature Week' ads they were banned. [caption id="attachment_58210" align="aligncenter" width="600"] Photo by Nicolas de Camaret and used under the Creative Commons Act 3.0.[/caption] Facebook auto-censors ads that contain blacklisted words, some of which were in the initial post. The post ad sho [...]


Facebook Updates Policies On How User Data Is Used In Advertising

facebook-target-aim-featured Following this week's "sponsored stories" legal settlement, Facebook is following court orders by updating the documents that explain how the company collects and uses data -- particularly in advertisements. Close observers of Facebook's privacy and usage documents may want to check out the "redline" PDFs for the Data Use Policy and Statement of Rights and Responsibilities, which clearly show the new language that Facebook is proposing. The biggest clarification in the latter document, and the one specifically referring to the recent legal settlement, comes in a section titled About Adve [...]


Forecast: Mobile To Be 48 Percent Of Display Revenue By 2017

money-growth-chart-featured Data aggregator eMarketer has published a revised set of ad-revenue forecasts with an emphasis on mobile. The firm projects that mobile advertising will account for an increasing share of display revenue and represent nearly 50 percent ($14.5 billion) of all display advertising by 2017. Google will capture more than 50 percent of global mobile ad revenue this year; Facebook is gaining, however. According to eMarketer, Facebook's share of mobile ad revenue will grow from just over 5 percent last year to almost 16 percent this year. In terms of the broader category of global digital ad [...]


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