While opinions vary regarding the impact that Facebook Graph Search will have on members and marketers, most believe the feature will impact the change of online social behavior. Relying on a network of friends moves marketers closer to a scary reality. Some 92% of consumers believe a recommendation from a friend over marketing from a brand, according to Anna Banks, VP of strategy at Organic. "It becomes critical for marketers to figure out how to make this dynamic work for them without it seeming creepy or big-brotherish," she said. "Consumers will need to feel like they get real value from the company leveraging their data and networks, not just opportunistically pushing their wares." The feature takes "social ads and social advertising to the next generation," according to Banks. The ability to mine data related to friends presents a new way to find potential and existing customers who are more likely to have similar attributes to a brand or product's core audience, she said. Opportunities become more than just finding the targets; it's about leveraging the network to market or endorsements -- either spontaneously or prompted via reward, the products and services. Graph Search will change the way that Facebook members use the site, said Will Critchlow, co-founder at search engine optimization agency distilled. It means conditioning Facebook members to perform searches when they want to know something, such as "has anyone used" a specific piece of software or "who in my network likes" Starbucks coffee, he said in a video uploaded to YouTube. Kenshoo CMO Aaron Goldman said since Graph Search supports social context it should improve click and conversion rates. It will require brands to continually keep Fan pages updated and complete. Sponsored Results will become part of Graph Search, and the improvements in functions should generate more adoption from both consumers and marketers. In addition, running ad campaigns to increase page "likes" will boost a business's chances of appearing in search results as part of friend connections. Analysts will closely watch Facebook's move into search and the influence it will have on services from companies like Yelp.
Dentsu's 360i unit is expanding internationally, opening an office in London in partnership with sister Dentsu shop STEAK. The meaty digital shop, which won a Creative Media Award Thursday night in the Social Media category for its "Great American Bacon Barter" campaign for Oscar Mayer, has designs on outgrowing its digital roots, much the way it expanded beyond its original core search expertise, to be the next-generation full-service agency model. The expansion into the U.K. is the sixth outpost for 360i, which currently has a workforce of 500 people, and the first outside the U.S. Rob Connolly, Dentsu’s former chief development officer, has been appointed U.K. managing director of 360i. He reports to Oliver Bishop, CEO of STEAK Group, who takes on additional responsibility as CEO of newly formed 360i Europe. “This expansion is a direct result of strong demand from our clients to increase our footprint and breadth of services abroad,” states Bryan Wiener, CEO of 360i and chairman of Dentsu North America, an operating unit comprised of Dentsu agencies including STEAK. “We’re already working with a handful of clients in the UK and having a local presence will immediately bolster our ability to meet their needs.” Following Dentsu's acquisition of Aegis Group this year, 360i and Dentsu's other major U.S. agency groups are expected to be reorganized under Aegis' aegis.
Widespread consumer adoption of smartphones and tablets, along with adoption rates for Google product listing ads (PLAs), continue to drive a major shift in advertising investments, according to Adobe Systems research released Thursday. Retail marketers spent 16% more on paid-search campaigns in in 2012, compared with the prior year. Google took about 86.5% market share in Q4 2012, up from 85.9% in the prior quarter. Sid Shah, director of business analytics at Adobe, attributes the growth to strong mobile traffic and the transition of Google Shopping from a free to a paid model supported by product listing ads. Shah identified several trends, such as the growth in Google product listing ads, and tablet impressions that began immediately after Christmas, creating a new baseline for adoption. PLAs, which made a transition from a free to paid product in October 2012, accounted for 17% of all advertising spend on Google by mid-December. Google increased its market share of retail spend by 0.6% in a year to 86.5%, but nearly all its growth came from PLAs. The new model accounted for 10.7% of overall spend in Q4 2012, nearly the same size as Bing market share at 13.8%. But as the holiday season ramped down, PLA spend fell too. The Adobe research compares PLA versus standard text ads. It turns out that PLAs have a 34% higher click-through rate (CTR) compared with text ads. The average order value (AOV) for PLA ads is 12% lower than standard ads. Again, this is not surprising, given that prices are shown on PLA ads. Finally, ROI and CPCs on PLA ads are also comparable to standard ads. The market has seamlessly rationalized the price of PLA ads so that their performance is comparable to the standard ad ROI, the findings explain. When it comes to tablets and smartphones, mobile accounted for 20% of impressions and spend in Q4. Tablet campaigns in retail tend to yield 73% higher conversions than desktop campaigns, and originally had a 30% lower cost per click, but that's changing. CPCs on tablets remain lower then desktops but continue to rise. In the final quarter of the year, tablet CPCs rose to 16%.
Given Facebook’s massive presence, it could take weeks for analysts to glean all the implications of the company’s new social search offering, Graph Search, which lets users search the social graph for people, pictures, and places -- including local businesses -- and various interests. In particular, Web watchers are wondering how Graph Search will impact Yelp, which specializes in local business listings and reviews. On Tuesday -- the day Graph Search made its public debut -- Yelp shares were down by about 6%. Some analysts, however, said it was too early to call the new service a clear Yelp killer. JPMorgan analyst Kaizad Gotla, for one, thinks Yelp can hold its own against Facebook and Graph Search. “While we think Graph Search is likely to become more competitive with Yelp as Facebook aggregates more local review/rating information over time, we don’t believe Facebook currently offers Yelp’s depth of review content to make Graph Search a replacement for Yelp at this point,” Gotla explained in a research note. “Yelp has the content advantage for now,” Gotla added. “We trialed Graph Search and found that while the product could become a meaningful way to search for local businesses over time, there wasn’t enough user-generated content (check-ins, Likes, etc.) within a person's network to make the results meaningful in certain categories.” “In addition to relatively little Facebook user activity in some categories, we also note that several local business pages on Facebook don't appear to have the depth of photos and other user-generated content that Yelp does and we think it may be challenging for Facebook to quickly ramp this information...,” according to Gotla. The fact is, however, that Graph Search is only days old, and Facebook is still working to index all the connections in the social graph. A more thorough indexing along with a successful mobile service will be critical to Graph Search’s long-term success, Gotla said, noting that it should become more competitive with Yelp and TripAdvisor over time.
A new Forrester report projects U.S. mobile payments will rise steeply in the coming years, propelled mainly by in-store mobile transactions. The research firm forecasts 48% annual growth in m-payments from $18.2 billion this year to $90 billion in 2017.A separate Forrester study focused on U.S. mobile retail sales estimates that m-commerce will increase from $12 billion in 2013 to $31 billion in 2017, but remain a small part of overall e-commerce dollars. Neither report includes tablet-based purchases within the scope of mobile payments or m-commerce.Forrester breaks its mobile payments forecast into three parts: 1) mobile proximity, or in-store, payments; 2) mobile peer-to-peer (P2P) and remittances; and 3) mobile remote commerce, or m-commerce. Proximity payments are expected to be the fastest-growing segment, increasing 137% to $41 billion by 2017. In that time, it will shoot up from just 6% of mobile payments to 45%, while m-commerce drops from about 90% to 50%.The biggest jump for proximity payments is expected to come in 2014 as early adopters begin to try one or more m-payment solutions, pushing retailers to provide a better alternative to swiping a card or paying cash. The firm also predicts that retailers will ramp up adoption of Near Field Communication (NFC) technology to modernize point-of-sale systems. To date, NFC-based payment offerings like Google Wallet have not gotten much traction, in part because of a lack of supporting technology at the store level.P2P mobile payments are not projected to grow nearly as fast, at a still healthy 43% clip to $4.2 billion by 2017. Forrester analyst Denee Carrington points to a lack of ROI in P2P payments services, a largely untapped international market, and limited use of mobile bill-payment to date as factors slowing the growth of mobile remittances.As the most mature m-payments segment today, m-commerce will have the lowest growth rate in the next five years, increasing 31% to $45 billion. The report maintains mobile shopping will pick up when the checkout process becomes easier, consumers overcome security concerns in mobile transactions and m-commerce is better integrated with other shopping channels.A separate report by Forrester analyst Sucharita Mulpuru released Wednesday that focuses just on m-commerce points out similar hurdles in the space. (The projection of $31 billion is lower than the $45 billion in the m-payments report because it excludes travel purchases.)Other research has shown that much m-commerce is taking place on tablets rather than smartphones. An eMarketer forecast last week estimated tablet transactions accounted for more than half (57%) of the nearly $25 billion in U.S. m-commerce last year, with that proportion expected to grow to 62.5% this year. Forrester doesn’t include tablet-based sales in its own m-commerce figures.But given the size limitations of smartphone screens, Mulpuru suggests retailers consider shifting their focus to tablets. “Companies are likely to find that dollar for dollar, investing in innovative tablet solutions may be more worthwhile than investing in smartphone solutions, especially as sales via tablet continue to eclipse sales via mobile phones,” she wrote.Forrester estimates that only 3% of all e-commerce transactions last year took place on mobile phones, with even that figure likely skewed by higher sales on Amazon’s and eBay’s mobile properties. "Mobile Payments photo from Shutterstock"
Is Facebook making you fat?A new global study from Interpublic Group’s McCann-Erickson has found that consumers have conflicting feelings about the impact of technology on their health and wellness. The digital era provides access to reams of information about how consumers can lead healthier lifestyles and diagnose health problems. But there’s also growing concern that computers and the rise of social networks promote the sedentary lifestyle that leads to obesity, a top health risk.Some consumers do believe Facebook literally is making them fat, per the study, which found that 10% of respondents believe that the social network site is adding to their girth. The numbers increase when all social networking is considered. Globally, 25% of young men and 17% of young women (aged 18-24) worry that their obsession with technology and social networking is encouraging more sedentary living and obesity.But the confusion presents opportunities for brands, per the study, which found that 94% of consumers say brands have a role in supporting their wellness needs. Among the study’s recommendations: brands should sponsor at least one positive habit related to health and wellness. They should also find novel ways to enter the wellness conversation.“There is an exciting technological revolution in the wellness arena today which is empowering consumers, and transforming our health,” stated Daryl Lee, McCann’s global chief strategy officer. “There has never been a better time for brands to lead positive change.” The study also found that 21% believe doctors will be obsolete in the future. Globally, four in 10 people already feel more in control of their health as a direct result of technology, and a third trust technology more than their own instincts. But 66% believe that if doctors can focus more on preventing illness rather than curing it, they will continue to be valuable to consumers in the future.Depression is the top diagnosis for so-called “cyberchondriacs,” or people who look for health information online, according to the study. After depression, cyberchondriacs are most likely to diagnose themselves with obesity-related illnesses, allergies and migraines, the study found. The study was conducted by agency research unit McCann Truth Central, which surveyed 7,000 consumers in eight countries, including the U.S., U.K., Brazil, Peru, China, Japan, South Africa and Turkey. The full study can be found here.
Freelance photographer Daniel Morel was in Haiti in January of 2010 when an earthquake struck. Morel, who previously worked for The Associated Press, shot some pictures and then uploaded them to Twitter. The wire service Agence France Presse, Getty Images and other media companies including The Washington Post later reposted some of the images. Doing so set in motion a three-year battle over who is allowed to publish images that people post to Twitter. That dispute was partially resolved this week, when U.S. District Court Judge Alison Nathan in New York ruled that AFP and the Post infringed Morel's copyright. Nathan specifically rejected AFP's argument that it was allowed to use photos on Twitter pursuant to the microblogging site's terms of service. "It suffices to say that based on the evidence presented to the court the Twitter [terms of service] do not provide AFP with an excuse for its conduct in this case," she wrote in a decision issued on Tuesday. The ruling is a blow to AFP, which was the one to initially escalate the matter by going to court in March of 2010, shortly after Morel's lawyer sent the wire service a cease-and-desist letter. AFP asked a federal court to issue a declaratory judgment stating that the wire service had the right to use Morel's photos because he had posted them on Twitter. Morel countersued Agence France Presse and other companies for copyright infringement. At the time, Twitter's terms of service provided that users who submit content to Twitter grant the service "a worldwide non-exclusive, royalty-free license" to distribute that material. But the terms of service also said that users still owned their content and that the purpose of the license was to authorize Twitter to "make your tweets available to the rest of the world and to let others do the same." Nathan's ruling this week still leaves open several questions, including whether Getty infringed copyright. The ruling also doesn't resolve whether the infringement by AFP and the Post was willful. Nathan ruled that those questions raise factual issues that have to be decided after more evidence has come out. For its part, the Post, which received the images from Getty and posted four of them, argued that it didn't know the images infringed Morel's copyright. But Morel says that his lawyers notified the newspaper more than once that the photos were infringing. If Morel can prove that the infringement was willful, he might be able to recover more in damages.
eBay on Wednesday reported mobile transaction volume on its platform more than doubled in 2012 to $13 billion, while mobile payments handled by its PayPal unit tripled to $14 billion. The mobile gains helped the e-commerce giant increase revenue 18% in the fourth quarter to $4 billion. It posted earnings of $927 million, or 70 cents a share, beating analysts’ expectations by a penny. eBay has been one of the biggest players in mobile commerce in recent years as more of its users complete transactions through its mobile properties. "Mobile continues to rewrite the commerce playbook, and we continue to be a mobile commerce and payments leader," stated eBay president and CEO John Donahoe in its earnings release. He added that he expects mobile payments through PayPal to surpass $20 billion this year. eBay only keeps a fraction of the billions in mobile purchases and payments transacted on its platforms. eMarketer projects U.S. m-commerce sales, across smartphones, tablets and other mobile devices, will reach $38.4 billion this year. A Forrester forecast released today projects U.S. mobile payments--spanning in-store payments, remittances and m-commerce--will grow 48% annually from $18.2 billion in 2013 to $90 billion by 2017.
In its third acquisition in the last 18 months, and second in the mobile space, the CRM and loyalty platform ePrize has acquired Mozes. A Palo Alto-based mobile-focused company started in 2005, Mozes specializes in in-event messaging programs for sports, concerts and TV broadcasts. ePrize will incorporate the product into its portfolio of service aimed at multichannel engagement campaigns. Mozes has created interactive programs at events like SXSW, the American Idol Live Tour and viewers of the country Music Awards, among others. ePrize creates rewards programs, sweepstakes, and other offer-based programs for clients like Walgreen’s, The Gap, Oreck, Kraft and others. ePrize says the Mozes acquisition will allow for easier integration of these programs across platforms. This is the second mobile acquisition for ePrize in recent months. In January 2012, it acquired mobile CRM and SMS marketing firm Cellit. In July the company bought a predictive analytics firm, the CRM division of Apollo Data. And in August ePrize itself was bought by Catterton Equity Partners.
There is a lot of concern about whether mobile ads are effective -- they are. As of Q2 2012, Facebook mobile ads were getting 13 times more clicks and earning nearly 11 times more than their desktop alternatives, based on studies from TBG Digital, AdParlor, Spruce Media, and Nanigans. So if mobile advertising works, who exactly do you target and how? There are a variety of methods -- from interstitials to WAP mobile ads. More recently, location-based advertising has been advancing, and according ABI Research, 10,000 stores were projected to have location technologies for advertisers by the end of 2012. Regardless of an advertiser’s medium of choice, the audience is the key component of any successful campaign. Online giants are refining their advertising capabilities everyday and have massive user bases. Some 60% of Facebook’s 1 billion users access the site via the mobile platform, and Twitter reported that up to 60% of their active users access the service on mobile devices. Google’s mobile business reported revenue earnings were up $2.5 billion from 2011. How do marketers take advantage of the new opportunities that mobile presents? 1. Optimize ads for mobile apps, mobile-optimized web and standard web. Mobile ads have a look and feel separate from their Web-based counterparts. They are simplified, sized differently, and take less time to load. Optimizing for mobile can drive conversion rates at a lower cost. In-app advertising, gives marketers an opportunity to evolve past the banner ad to develop more creative rich media advertising. 2. Leverage the opportunities mobile has to offer. Mobile allows marketers to utilize location-based advertising, behavioral targeting, weather, predictive analytics and other consumer data that may not be available or useful in another advertising medium. If a user is in an area where there is a thunderstorm, send a mobile ad for a raincoat. 3. Target by carrier and by device. Carriers and devices often have clear demographics that allow you to segment your ads based on demographics, including age, gender and income. Screen size also varies drastically from mobile devices, so it is crucial that ads are optimized for the right device. A mobile ad designed for a smartphone will not look the same on a tablet. 4. Utilize predictive analytics in conjunction with location-based advertising. This combination gives marketers an idea of the best times to offer ads. Instead of targeting consumers at a specific store, take their behavior into account, and target them when they are most likely to go to the store, and offer discounts at the closest location. If you know your end-user gets coffee every morning, then send an ad for a new flavor of the week at the nearest coffee shop. 5. Identify the mobile users you want to target. Whether the ideal mobile user happens to be an impulse shopper, an in-store customer or a bargain hunter, there are appropriate offers and effective methods to deliver those offers. Variables such as timing, age, gender and location need to be taken into account to successfully market. An ad for a one-day sale might be targeted to a potential customer within a 500-foot radius of the store. Mobile offers ample opportunities to marketers, but the technological differences of mobile and traditional online advertising are not yet clear. Mobile ads are not repurposed Web ads. If they were they would not be effective. You wouldn’t put a print ad on TV so why do it with mobile and online ads? Mobile is a young ad medium, but that only means there is a huge opportunity for growth and innovation.
Twenty years ago, it’s a pretty safe bet that the media profile of the average working person’s weekday lunch break will have been dominated by radio, print and TV, with the computer being the new kid on the block.This USA TouchPoints analysis of which media people use during a break from work occurring anywhere between 11:30 a.m.-2:00 p.m. on the average weekday reveals how that isn’t the case today.While radio is clearly dominant a the medium of choice for 24% of people on a work day, the ascendancy of mobile places it in second place with a reach of 17% -- just ahead of television at 15% and the computer at 12%.It’s safe to assume that the combination of radio in the workplace, the car and at retail outlets and elsewhere combine to support radio's position.As far as mobile is concerned, it will be interesting to see if usage grows over time during the lunch break or whether this time is used to cram in the business of lunch or personal errands. The relative strength of the TV at this time may be related to those eating (and perhaps working) at home, but it may in part be influenced by the increase in the prevalence of TVs in public spaces, such as sports bars.The computer is almost certainly achieving it’s 12% through a combination of laptop use outside the office and -- perhaps more likely -- non-work related use in the office itself.Print achieves a reach of only 3% -- presumably having lost share over the years to the computer and perhaps mobile. At present, it is ahead of the tablet, which only currently registers 1% reach during the lunch break. Perhaps touchscreens and food really don’t mix.