Facebook, the obvious key player in the social data game, is currently taking a backseat to scrappier startups, both to avoid overstepping privacy sensitivities and to focus on other growth areas. That’s left an opportunity for new companies like Media6Degrees, 33Across and RadiumOne, which are licensing large amounts of data from instant-messaging clients, sharing applications and blog services in order to piece together customized social networks for ad campaigns.
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With the ability to target Facebook advertising with very specific targeting and bid on a CPC basis, it is only a matter of time for significantly more performance-based advertising dollars to follow suit. Social media is part of social search marketing; however, social media (Facebook) is also part of the display ecosystem.
Having only recently launched its location-based Places feature, Facebook is reportedly testing a « Deals » service with which businesses can offer incentives to users whenever they check-in to a physical store.
« OpenAmplify uses multi-patented text analysis software to ‘read’ and understand the meaning of every word in every sentence and paragraph that it analyses across social networks and the wider web. It understands what’s being discussed, how, when, where and why – making it extremely valuable for anyone seeking to monetise, analyse or create value from online content.
Facebook has filed for an ad targeting patent that lets the company direct ads based on the tastes of a a user’s friends, on top of their own explicit interests.
Half of ads targeted to gay men didn’t mention the word « gay » in the text, so a user would have no idea that he had been targeted on the basis of sexuality, it continued. « Yet by clicking it he would reveal to the advertiser both his sexual-preference and some kind of » personal identification, such as IP address, or email address if he signs up on the advertiser’s site.
Some top Facebook applications such as Zynga’s FarmVille had transmitted « Facebook ID numbers to at least 25 advertising and data firms, several of which build profiles of Internet users by tracking their online activities. » The article referred to the transfer of Facebook user IDs as a « privacy breach » because, the story stated, « Facebook prohibits app makers from transferring data about users to outside advertising and data companies, even if a user agrees. »
Gurbaksh Chahal, the serial entrepreneur who started behavioral targeting firm Blue Lithium and virtual payments provider gWallet today unveiled his latest venture: RadiumOne, an ad network promising better results by mining the social graph to target ads.
The Wall Street Journal’s recent article in the “What They Know” series discussed the problem of Facebook IDs being passed to ad networks. This is a serious potential privacy risk – and most Facebook applications are impacted by this issue.
Microsoft and Facebook made interesting advancements yesterday by announcing the integration of social signals into Bing. It makes me wonder what search engines will look like in two to five years and whether advertisers will need technology like retargeting or behavioral targeting to serve up relevant ads to consumers or will the ads rely more on signals from our social connections.
Facebook eliminated conversion tracking. The explanation was something along the lines that they didn’t feel it was relevant to the social nature of their ads and they think it’s more important to track their social metrics like “shares” and “fans”. Hmmm, what!!??! What’s the whole point of what we’re doing? Our goal is to get people to actually buy something! So we need to measure it.
Twitter plans to launch a self-service advertising platform in 2011 which will include the ability to geo-target commercial messages, according to the company’s COO, Dick Costolo.
“The popularity of Twitter has fueled expectations that marketers could use the service to target relevant ads to consumers interested in real-time information about breaking events and other topics,”
But as brands embrace geo-location ad campaigns, they should not ignore what has been proven to be popular among consumers on Facebook – coupons and other straightforward offers. With 500 million users now, a considerable knowledge store has developed about what they like and how they like to be contacted – down to the day, and hour.
Targeted ads: As Stone alludes to, there is also plenty of room and functionality to run very targeted ads (Twitter profitability here we come anyone?). « It’s faster, it’s easier and it’s a richer experience, » said Williams. « Simple things that are cryptic on Twitter today become a lot more clear. »
« The best thing that would happen is for Facebook to open up its data, » Mr. Schmidt said. « Failing that, there are other ways to get that information. » He declined to be specific.
According to those sources, that includes the possibility for the software giant’s Bing search service to mine anonimized data from consumer usage of the social networking site’s recently introduced Like buttons.
Whether privacy advocates or Facebook users like it or not, Facebook is amassing incredibly rich and detailed profiles on its community from a variety of sources that can be used to target ads with ever more effectiveness. Furthermore, you can target unique niches of people in quantities that really no other media property could possibly match. For example, « women in 10 particular cities between 18 and 28 who love bike riding. »
It will be interesting to see how this patent will affect search engine players like Google who are likely to have such click-behavior analysis incorporated into their search engine ranking algorithm.
The company already lets you select advertising demographics based on factors like age, sex and city. Now, it’s giving you the option to slightly expand the scope of the ages you target, giving you access to more people near your desired target, who may cost less to reach.
AT&T’s business directory reentered the online market Thursday with the launch of its new Web site, complete with geo-location targeting, social services through Facebook and partnerships all with the aim of turning the portal into a community.The focus remains on local businesses and partners.
Facebook’s Places borrows heavily from location-based social networks like Foursquare and Gowalla, which allow users to check in at places and broadcast their location to friends.
Marin Software on Tuesday will make available a Facebook application that lets advertisers and agencies manage Facebook campaigns alongside those running in Google, Bing and Yahoo. Advanced features include audience segmentation, algorithmic bidding and ad rotation.
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