The problem is the only way Facebook has found to make money is by treating all entities on the site as advertisers and charging them to share their content.
This business plan backfires because 1) not all entities ARE advertisers and 2) it was the content from these people, specifically friends, family, and creators that made the site worth visiting in the first place.
Now the incentives are misaligned:
- Individuals want to see great content, but they are now seeing more paid content and organically shared content which appeals to the lowest common denominator (babies, weddings, and banal memes)
- Creators want to reach fans but their posts are being throttled to force them to pay to be seen
- Brands and advertisers have to pay once to advertise their page on Facebook, and then pay again to reach the people who have already liked their page. Plus Facebook is not a place where people generally go to buy things.
Facebook stands in contrast to other social media like Twitter, YouTube, and Instagram where all content is shared with all followers.
Facebook is now compliant with the Online Interest-Based Advertising Accountability Program, and has to show the AdChoice icon in behaviorally targeted Facebook Exchange (FBX) ads. This allows users to know when an ad is marketed to them on their browser behavior. The catch, however, is that the icon is only displayed when a user interacts with it by scrolling of the gray "X" over the ad.
Facebook will change the "Report this Ad" text with "Learn About Facebook Ads," and users can choose to opt out of specific ad networks. As Engadget notes, however, whether this legally complies with the Federal Commission guidelines for "clear and prominent notice" is unsure, as the ads only reveal itself as targeted once a user interacts with it.
AdChoice implementation will start at the end of March.
Six grueling years of the ACCC dragging Google in and out of Australian courtrooms and hearings for "misleading advertisements" displayed in search results have now come to an end.
Five Australian High Court judges have overturned a ruling requiring Google to set up programs that properly vet ads. The lawsuits started because of the specific claim that if one were to search Google in 2006 for "Honda Austrailia," the user would also be shown sponsored ads from competing car companies. This new ruling, however, proves that the concern of the ACCC is an outdated one.
Read More | Reuters
There's a high cost for making Samsung Galaxy devices. Horace Dediu, from Asymco, breaks down the math and visualizes them into nifty graphs. There's no question that the mobile Galaxy line embedded with Android has been a success for the South Korean conglomerate but, apparently, it comes at a cost of marketing the products. Sales, general and administrative (SG&A), is part of the equation being extrapolated for the results for past trends from 2009 to 2012. In other words, Samsung basically spends roughly four times more on marketing than its most rival mobile competitor. A good marketing example is seeing a payed advertisement for the Samsung Galaxy S III at the top of the Twitter Trend. Or those now infamous "Next Big Thing is Here" commercials basically trolling Apple customers at a line for a faux launch.
Read More | Asymco
Recently, it has been reported that, with iOS 6, Apple has a new tracking mechanism built-in that allows targeted advertising. Basically, this just means that when there are ads in apps, that they can display ads that Apple feels will be more relevant to you, rather than having them be completely random. Some users don't appreciate any sort of behavior tracking, and would rather turn this feature off. One easy way to get to this setting is to visit the following address from your iOS device: http://oo.apple.com. That will redirect you to the opt out panel for Interest Based iAds. Turn the setting to OFF to disable the feature, and you'll no longer see ads that are targeted to your interests.
Lexus calls it CinePrint, we call it brilliant. The luxury auto maker has created a very nifty interactive marketing ad, which utilizes a user's iPad to bring a 2013 Lexus ES to life in a magazine. From a marketing standpoint, the illustration is very impressive and gets the reader involved in the process of merging print and video. This is surely lacking when just reading a static page or watching a traditional car commercial on TV, at which point we usually just turn the page or tune out. It's still an ad, but it's pretty freaking cool. Check out the video after the break.
Fait is taking a chance on Charlie Sheen in hopes of generating sales. The company is betting that the edgey appeal of Sheen will generate more hype for the vehicle, which has been suffering in sales.
The use of Charlie Sheen as a spokesman has generated questionable publicity, Chrysler’s chief marketing officer, Olivier Francois, stands behind his pick, stating, “He [Sheen] definitely has a bit of the scorpion in him.” Francois was the mastermind behind the “Imported from Detroit” ads which starred Eminem, and this years “Halftime” ad using Clint Eastwood. Advertising Age went on the record stating, “From drug use to allegations of domestic abuse, Charlie Sheen is a portrait of bad behavior.”
Let us know what you think in the comments below.
Read More | Sun Times
We’re always fan of interesting marketing technics, but this one takes that cake. Ford has unleashed a series of marking campaigns in this years Sports Illustrated Swimsuit magazine that feature the sexy Mustang in different colors alongside one beautiful model in a matching swimsuit. The model, Dalena Henriques, never shows her face, but it credited in each ad.
A quick Google search for Dalena Henriques brings up DalenaHenriques.com, no surprise there. The thing is, when you visit the site, every photo in her portfolio features her with the Mustang, with no face revealed. It then becomes obvious--Ford created a fake supermodel (and yes, they credited her as a "supermodel") of their own as an additional means to generate buzz.
Read More | Adweek
Google has released a new browser extension for their Chrome browser called Keep My Opt-Outs, which is a simple way to opt out of Google-based advertising tracking, along with ad tracking from other major advertising companies. The company points out that this is in part an answer to governments and groups asking for "no track" options online. It's worth noting that this is an extension that needs to be downloaded, so this won't change much for advertisers. Everything this extension does could be done manually before, and people who go out to get it may well have been blocking tracking cookies in the past. Still, this is a good step which will hopefully lead to similar tools on other browser platforms.
Read More | Google Blog
Who knew Coke Zero would be in the forefront of gaming innovation? Last week, Coca-Cola released "the first ever location-based videogame" called LiveCycle.
LiveCyle is based on Disney's TRON: Legacy film and the premise of the game is to move around the real world real to create a Light Wall and derezz your opponents, and avoid being derezzed by theirs. The Coke Zero websites offers a trailer of the game which makes it seem like a pretty fun idea, though there is a lack of actually gameplay. Real gaming innovation or interactive advertising? You decide! Play the game and let us know in the comments!
Live Cycle is available in the iTunes stores for the low, low price of $0.00. Download it here.