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March 24, 2011

Facebook Utilizing Real-Time Conversations For Ad Targeting

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Facebook Real-Time Ads

Are you sick and tired of seeing teeth whitening ads on your Facebook account? Or perhaps even ads that seem to fully miss your lifestyle? Facebook may soon have an alternative, the social networking company this month began testing a new way to target users by data mining their real-time conversations.

The current testing environment is only targeting 1% of Facebook users, an amount equal to approximately 6 million users, not a bad study group.

The move marks yet another attempt by Facebook to more directly target users, you may recall that they recently began offering “sponsored stories” in which users brand interactions are posted via a side bar with included ads.

The new program is simple, for example a user may type “I really want to buy a new pair of Nike basketball shoes” at which point they may immediately see a Nike ad, perhaps a coupon for “x amount” off a pair of shoes at Foot Locker.

For users who may be a bit confused, it is true that targeted ads have been offered for some time now on Facebook, however a real-time based ad platform is a new opportunity for the world’s largest social network.

The platform is being tested on only 1% of users because Facebook says the algorithm they use is so complex that it must be tweaked to perform at levels advertisers will appreciate. Unlike search engines such as Google and Bing, Facebook often ignores keywords and looks at other factors to determine which ads will best target their core user groups. read more

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March 7, 2011

Twitter Actually Worth $7.7 Billion? Probably Not

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Twitter CashLet me be frank for one second, auctioning off your company’s private stock is nothing more than a ploy to raise the company’s valuation far beyond what it is actually worth. When stock is auctioned company’s wanting to acquire shares will over value their purchase, leading to higher stock prices and inevitably an inflated valuation. This week Twitter did just that, auctioning off enough company stock that the websites valuation how now skyrocketed to $7.7 billion.

So why would Twitter do such a thing? For one they have been the target of possibly acquisitions by Facebook and Google who have both showed an interesting in the micro-social program and will now have to pay with many more buckets of cash if they are to succeed in their takeover attempts. On a secondary level, Twitter now has more cash to acquire other social media company’s, allowing them to procure talent buys and drive new functionality to the website, an important consideration when you look at the acquisitions made by Facebook, Google, Microsoft and other larger tech firms over the last 12 months.

The new total is nearly double what the company was worth in January and at last check I haven’t seen them grow at a 100% visitor base or for that matter role out any groundbreaking technologies that will revolutionize the way people interact or advertise using the program. read more

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November 9, 2010

Facebook Now Controlling Almost 25% Of Online Marketing

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Facebook Logo

It’s a good time to be Mark Zuckerberg, sure The Social Network made fun of him, but director David Fincher isn’t controlling 23% of all display ad impressions on the internet now is he?

Internet reporting firm ComScore provided that staggering number this week, while adding that Facebook has provided advertisers during the last quarter with more than 297 billion display ad impressions.

The 23.1% share is up from 9.2% during the same quarter one year prior and the company’s 16.2% share during the last quarter.

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