Weekly Digital News Roundup: June 18 – 22
- Facebook says it’s working on a location-based mobile advertising product that will enable companies to target users with real-time data showing their whereabouts, as reported at Bloomberg.com. “Phones can be location-specific, so you can start to imagine what the product evolution might look like over time, particularly for retailers,” Carolyn Everson, Facebook’s vice president of global marketing solutions, said in a telephone interview with Businessweek.com. “We’ve had offers being tested over the last couple of months.”
- Facebok is increasing its mobile ad efforts amid concern that ad revenue isn’t keeping pace with users’ migration to smartphones. U.S. mobile ad spending is projected to grow 80% this year, which means that Facebook needs to up its game and take advantage of the opportunities in mobile ads.
- “The holy grail of advertising is finding people when they are at their closest point to making a purchase,” said Colin Sebastian, an analyst with Robert W. Baird & Co. in San Francisco. “Having some location-based element to advertising can be very powerful, and if you combine that with all the personal data Facebook has, the potential is enormous.”
Facebook to Introduce Real-Time Bidding on Advertising
- Facebook plans to debut real-time bidding for advertising on it site to more effectively target ads to consumers. Called Facebook Exchange, the service will let advertisers reach specific types of users based on their browsing history.
- Prices will be based on cost per thousand viewers and spots will be sold via third-party technology partners. It’s set to debut within weeks. Debra Aho Williamson, an eMarketer analyst, said that the company is “hoping to use that inventory on the right side of the page to deliver advertising that is more targeted.”
- With Facebook Exchage, marketers will be able to target people who have browsed certain websites based on cookies. Businessweek.com uses the example of users who have visited travel sites to research trips to Hawaii. These users might later see a promotion on Facebook about hotels in Hawaii based on the ads companies have purchased real-time in Facebook Exchange.
Twitter to Expand Ad Product Into 50 Countries
- Twitter CEO Dick Costolo said Twitter will start offering its promoted advertising product in 50 new markets this year as it reduces its reliance on the U.S. Twitter’s ads. A full list of countries wasn’t immediately available.
- Twitter is predicting $1 billion in advertising revenue by 2014. “The growth we’re seeing on the platform is interestingly still broad-based and global, still growing quite fast,” Costolo said recently at the Cannes Lions advertising festival.
- Jack Dorsey, Twitter chairman and co-founder, said that the company will be patient when it comes to raising cash or selling shares to investors, as reported in BusinessWeek. The closely held company “has always put itself in a position where we can choose when we are ready” to have an IPO, he said.