Weekly Digital News Roundup: Nov 1-5
Facebook’s Ad Warning Sounds a Note of Caution for Twitter
- According to Reuters, Facebook Inc’s investors and other proponents of the social network like to say that it captures one of the greatest concentrations of human attention on the planet and thus offers a boundless opportunity for advertisers. But Facebook Chief Financial Officer David Ebersman on Wednesday cast doubt on those assertions by suggesting that there may be a limit on how many ads Facebook can show users before they get turned off.
- Ebersman’s warning carries far-reaching implications for not only Facebook but also other social media companies including Twitter Inc, which is in the middle of a roadshow to promote its initial public offering to investors. Twitter has yet to turn a profit but it is pitching an advertising business model similar to Facebook’s.
- “It’s important for investors to realize that there is a limitation on the mobile ad revenue that can be generated. The sky isn’t the limit when it comes to that,” said Jeff Sica, the founder of Sica Wealth Management. “That’s the issue with Facebook. That will be the issue with Twitter.”
Google, Oracle Workers Enlisted for Obamacare ‘Tech Surge’
- According to Business Week, Google Inc, Red Hat Inc., Oracle Corp. and other technology companies are contributing dozens of computer engineers and programmers to help the Obama administration fix the U.S. health-insurance exchange website.
- The help is arriving as the government’s main site for medical coverage remains plagued by repeated outages a month after its Oct. 1 debut. Michael Dickerson, a site reliability engineer on leave from Google, and Greg Gershman, innovation director for smartphone application maker Mobomo, are among those helping, the Obama administration said yesterday.
- About 8.6 million people visited the federal website in the first week, encountering software flaws and long waits that prevented many from even registering. HHS has said that capacity is being added to the system and multiple upgrades are being made to the software code, though as of two days ago error messages were still being displayed for some users. Getting the site fixed soon is critical as Americans who don’t have health insurance by March 31 may have to pay a fine of as much as 1 percent of their income.
Study: Instagram Is The Fastest Growing Social Network, Top Brand Engagement Up 350% Since Last Year
- According to MarketingLand, Instagram is the fastest growing social network with 150 million users and 40 million photos being uploaded each day according to social analytics company Simply Measured. A new report from Simply Measured shows that brand engagement and interaction is also thriving on the photo-based social network with 71% of top brands now participating.
- One of the exciting stats from the report is the fact that the number of active brands is growing (55% more brands using the network than last year) as well as the overall engagement. The entanglement metrics (likes and comments) have jumped 350% since last year. Currently 99% of the engagement is currently coming from image likes.
- An interesting fact is that many users are liking brand images for the content – not the filter/creative treatment. Only 30% of brand posts were filtered, a number that was down 12% from last year.